In this episode, Francesca Ghiretti joins Adam Dixon to discuss the complexities of the China-US rivalry and its implications for Europe and the UK. They explore the escalating tensions between the two superpowers, the impact of self-sufficiency trends, and the challenges Europe faces in navigating its relationship with China while maintaining strong ties with the US. The discussion highlights the need for diversification and strategic planning in the face of economic uncertainties and geopolitical shifts. The conversation also covers the evolving political landscape in Europe, focusing on the UK's economic security, the EU's rightward shift, and the implications of these changes for European unity and defence spending. They explore the challenges of industrial policy, and the importance of creating ecosystems for successful industrial strategies. The discussion highlights the complexities of navigating national interests within the EU and the need for coordinated efforts to address pressing issues.

Takeaways:

• There is significant escalation in US-China tensions.
• Self-sufficiency is a growing trend in both the US and China.
• Europe's identity and economic strategy are being re-evaluated.
• The UK faces challenges in maintaining a coherent China strategy.
• Granularity in regulations complicates European engagement with China.
• Europe needs both the US and China for growth and innovation.
• The UK lacks the leverage it had as an EU member.
• A rightward shift in European governments poses challenges for unity.
• The Berlin-Paris axis is weakening, affecting EU foreign policy.
• Giorgia Meloni's focus is more national than European.
• Increased defense spending is critical in light of recent events.
• Coordination in industrial policy is lacking across Europe.
• Misconceptions about industrial policy success can lead to misguided strategies.
• Ecosystems play a vital role in the success of industrial strategies.
• Public money allocation in industrial policy needs careful consideration.

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Francesca Ghiretti:

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Chinese Investments and the Economic Security Turn in Europe