The call to make the Netherlands and the EU less dependent on China is being heard more and more. The argument is that the country is given too much power and there are security risks associated with it. The Central Planning Bureau (CPB) and Statistics Netherlands (CBS) acknowledge this in an investigation on Thursday, but add that phasing out this trade will not be cheap.
The Dutch government recently withdrew a Chinese company from a tender for the construction of electrical infrastructure in the North Sea, fearing that China will hide sensors in pipes, NU.nl reports on Thursday. This gives the country access to sensitive information.
It is not the first time that security concerns have arisen related to the interdependence between the Netherlands and China. CPB and CBS confirm in a study that these concerns are not unfounded. There are also geopolitical risks to the Asian country’s dependency.
However, if we want to reduce this trade, it will cost us, according to accountants. Dutch exports increased by 2.6% thanks to the cooperation with China, creating 66,000 jobs in 2020. The entire EU has an export advantage of 1.8% from China. If we end the partnership, this could all be gone in the blink of an eye.
In addition, finding new suppliers or recalling production capacity from China will lead to one-time switching costs that can be high. The exact height is difficult to predict.
The collaboration between the Netherlands and China focuses largely on semiconductors for computer chips. In addition to ASML and NXP, there are many large chip companies in our country. But precisely because these products are full of sensors, there are enormous security risks.
That is why there has been a political call for some time to become less dependent on the country. “The Netherlands will have to weigh up the geopolitical risks and costs of phasing out,” the researchers write.
Our country also imports steel, electrical appliances and coal from the Asian country.
Source: NU
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
