Europe and China: Competition moves from factories to regulation

The European Commission's recent actions, including a 200 million euro fine against the trading platform Temu and an in-depth investigation into JD.com under the Foreign Subsidies Regulation, mark a significant escalation in EU-China competition. While some may have viewed these as isolated incidents, they represent a much larger trend: the rivalry between the European Union and China is increasingly shifting from traditional economic battlegrounds like tariffs and pricing to more complex arenas.

This new phase of competition is centered on regulation, technology, data control, and market access. Instead of solely focusing on the cost of goods, both blocs are now vying for influence and advantage through the rules they set and the technological standards they champion. This regulatory push reflects a desire by the EU to level the playing field and ensure fair competition against state-subsidized entities.

The implications of this shift are profound, suggesting a future where geopolitical and technological strategies will be as crucial as trade deals. As the EU tightens its regulatory grip, China is likely to respond with its own measures, further shaping the global economic and technological landscape.