Eurogroup Chief Donohoe Says Engagement With China Is Essential

Reto Gregori and Jorge Valero
·1 min read
7

(Bloomberg) -- Relations with China will continue to be an important feature of how the global economy develops in spite of pressure from the US to decouple from Beijing, said Paschal Donohoe, president of the Eurogroup, which brings together euro-area finance ministers.

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“Engagement with China continues to be essential,” he said at the Bloomberg New Economy Gateway Europe event near Dublin on Wednesday. “There may be a different emphasis in tone but the fact that the engagement is happening is the key thing.”

Donohoe, who is also Ireland’s minister for public expenditure, said Europe needs to strike the right balance as it deepens its trade relationship with China while developing the bloc’s economic strength.

The European Union is seeking to reduce risks in some strategic areas of its relationship with China as the US presses member states to take a more hawkish approach to the world’s second-biggest economy.

The transatlantic allies are looking at how to strengthen trade defense tools including export controls and investment screening as China takes an increasingly assertive stance in its foreign policy.

The New Economy Gateway series brings together leaders from the private and public sectors to analyze and propose solutions to the economy’s most pressing problems. This week’s event is focusing on the theme of “Reglobalization” — exploring the forces transforming trade and industry, from banking to aviation and energy to semiconductors.

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