World
China and the West: decoupling
Updated 1h ago
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The strategic de-risking of Western economies from China has escalated into a reciprocal regulatory conflict, where China's legal countermeasures directly target corporate compliance with Western policies, forcing a more complex and adversarial reassessment of economic dependencies.
Taiwan reports 244 Chinese vessels in July and parliament reshapes a T$240 billion drone budget, adding a military-coercion layer to the de-risking thread.
State of play
EU Trade and E-Commerce
The Commission pairs open markets with Japan, South Korea, and the UK with trade-defence instruments targeting Chinese vehicles and critical raw materials. Draft legislation would restrict EV subsidies to European-made vehicles. The €3-per-item parcel duty, in force since July, cut Polish e-commerce declarations by 50.1%.
US Tariffs and Sanctions
Washington is weighing semiconductor tariffs extending to laptops, consoles, and data-centre servers, with rates linked to US manufacturing investment. Expanded Iran sanctions bring dozens of China- and Hong Kong-based entities under restrictions. Treasury Secretary Bessent warned partners of possible exclusion from the dollar system.
Taiwan Strait Pressure
Taiwan's coast guard recorded 244 Chinese government vessels around the island in July, up from 55 in June. PLA aircraft continue crossing the median line into Taiwan's air defence zone. On 27 August, Taiwan's parliament rejected a T$210 billion special drone budget, approving T$40 billion annually from the regular budget through 2031.
Infrastructure Enforcement
Trump's 26 August order restricts foreign bulk-power equipment from US grids. EU moves to bar Chinese-made inverters from publicly funded energy projects run in parallel. US authorities are investigating Singapore-based Apex Logistics for allegedly transporting restricted Nvidia AI chips to China.
Key events
Full chronicle322
This week
- Taiwan coast guard data shows 244 Chinese government vessels in July, up from 55 in June
- Taiwan's parliament rejects T$210B special drone budget, approves T$40B/year from regular budget
- PLA aircraft continue median-line crossings into Taiwan's air defence identification zone
- DW reports EU parallel moves to bar Chinese inverters from publicly funded energy projects