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The risks of “de-risking"

By Carl Bildt

20 Jun 2023 · 3 min read

informed Summary

  1. De-risking has become a popular buzzword in policy circles, but it oversimplifies complex issues and can lead to unintended consequences, argues the author.

STOCKHOLM – We have just witnessed the birth of a new buzzword. Suddenly, policymakers in the United States and across Europe want to “de-risk” the relationship with China.

The term owes its new popularity to the equally sudden turn away from “decoupling,” which made the rounds for a while, until it turned out that almost no one favors a definitive break between China and the West. It is neither desirable nor even feasible to sever all ties with the world’s second-largest economy, so everyone has settled on a much vaguer concept.

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