Factbox-How to make EU less dependent on China and US

The European Commission and prominent EU leaders, including Mario Draghi, outlined a comprehensive strategic roadmap in Brussels this week to reduce the European Union's critical economic dependence on China and the United States. This emergency economic overhaul comes amid rising geopolitical tensions and fears that Europe is losing its competitive edge to global rivals in green technology and digital innovation. The plan aims to secure the bloc's future by fostering internal resilience and autonomy in a rapidly shifting international market. Central to this strategy is the radical diversification of supply chains, particularly regarding raw materials and energy components. The EU currently relies heavily on China for rare earth minerals and solar panels, a vulnerability that officials believe could lead to economic coercion. To counter this, the European Commission is proposing the 'Net-Zero Industry Act,' which encourages domestic production of strategic technologies. By simplifying the regulatory environment and accelerating permits for green projects, the Union hopes to manufacture at least 40% of its clean tech needs within its own borders by 2030. Furthermore, the report highlights the necessity of deepening the EU's single market and increasing joint defense and technology spending. Mario Draghi’s recent assessment emphasized that the EU must invest an additional €750 billion to €800 billion annually to remain relevant alongside the massive subsidies offered by China and the US Inflation Reduction Act. This involves a shift away from reliance on American software and security infrastructure, moving instead toward a unified European digital sovereignty that protects local industries while maintaining strong transatlantic ties where beneficial. To ensure social and economic stability during this transition, the EU is also exploring new trade partnerships with nations in Latin America and Africa. These agreements are designed to create 'Raw Materials Clubs' that offer an alternative to the current duopoly held by Beijing and Washington. By positioning the European Union as a balanced leader in global trade, the bloc intends to leverage its collective purchasing power to dictate ethical and environmental standards, thereby neutralizing the influence of its primary competitors.