Why China and Europe need to talk and how they can cope with chaos

Brussels and Beijing are both to blame for their strained ties and clear communication is needed to handle sensitive issues like Taiwan and rare earths, according to a veteran business leader and China watcher.Joerg Wuttke, former president of the European Union Chamber of Commerce in China, said the 27-member bloc should also redouble efforts to become more resilient.

Wuttke – now a partner at consulting firm DGA Albright Stonebridge Group in Washington – also called for a new Manhattan Project to break China’s dominance in the rare earths supply chain, during an interview in Beijing on Wednesday.

Since Donald Trump’s return to the White House, the EU has been increasingly marginalised, challenged by strained transatlantic relations, a more assertive Beijing, and caught between the US-China rivalry.Joerg Wuttke, a partner at DGA Albright Stonebridge Group and former president of the EU Chamber of Commerce in China. Photo: Simon Song

Internally, it has faced criticism that it lacks a coherent strategy on China despite repeatedly pledging to de-risk from the world’s second-biggest economy.

Relations with Beijing have continued on a downward spiral. Apart from long-standing rifts around manufacturing overcapacity and the protracted war in Ukraine, tensions have been rising in recent months over critical mineral supplies, investment and security.

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