China — A Fragile Power? How Europe Can Use Its Economic Leverage Over Beijing

Abstract

This Chaillot Paper argues that despite appearances of strength, China faces growing fragility rooted in domestic economic challenges. The authors contend that slowing growth, a rapidly ageing population, a debt-ridden property sector and shrinking fiscal space undermine governmental legitimacy. Beijing compensates through nationalist rhetoric and coercive international tactics rather than soft power. The analysis suggests Europe possesses significant economic leverage to manage risks through strategic de-risking, strengthened industrial autonomy, and coordinated EU-level China policy.

Peer Review

Community peer review and discussion of this publication.