Tuesday, November 28, 2023

The initiator of a German-based political and economic research institution has warned that efforts to reduce dependency on China could “lead to the self-implosion of Western economies.” She emphasized that such reduction strategies could inflict more damage on the implementers than on China itself.

The Perils of Reducing Dependency on China

Helga Zepp-LaRouche, the founder of the Schiller Institute, aired her concerns about the potentially damaging effects of Western nations trying to lessen their reliance on China during a discussion with Global Times correspondent Li Xuanmin, published on Monday. The Schiller Institute is a political and economic research group based in Germany, boasting members from 50 countries.

She stated that politicians advocating for “reducing dependency” fail to comprehend what experienced industrialists are well aware of: it’s impossible to promptly substitute China’s trade and investment partnerships given the country’s robust infrastructure and skilled labor force, which would take years to develop in other countries. She warned:

The policy of “reducing dependency” is likely to backfire, causing more harm to those who implement it than to China, as the repercussions from the sanctioning policy have already shown.

When questioned about the possibility of G7 countries pushing their “reduce dependency” approach towards China, the Schiller Institute’s founder responded, “The G7 countries would only do so at the risk of harming their own economies.” She further noted, “We are celebrating the 10th anniversary of the Belt and Road Initiative (BRI) this year, which currently involves 151 countries and 30 major international organizations partnering with China. It has emerged as one of the key driving forces of the global economy.”

She mentioned, “The G7 only recently acknowledged this at their latest summit in Hiroshima, Japan, and expressed their desire to engage more with ‘swing’ states, such as Brazil, Indonesia, and India.”

However, Zepp-LaRouche highlighted that the G7 “clearly missed the fact that some of these countries are already part of BRICS, and others have reportedly applied for membership.” BRICS consists of Brazil, Russia, India, China, and South Africa. Over 19 countries have either applied or shown interest in joining this economic bloc.

Zepp-LaRouche concluded:

Efforts to “reduce dependency” on China could trigger the self-implosion of Western economies, possibly relegating Europe to a peripheral role in global history.

Last week, Treasury Secretary Janet Yellen stated before the House Financial Services Committee that halting trade with China would be a “grave mistake” for the U.S., but affirmed, “Reduce risk? Yes. Decouple? Definitely not.”

Zepp-LaRouche contended that “‘decoupling’ and ‘reducing dependency’ are essentially the same,” adding, “The underlying geopolitical motive is to hamper China’s economic ascent by limiting its access to certain advanced technologies.” The research institute’s founder emphasized, “But that ship has already sailed, given China’s global leadership in patent registration and critical areas of science and technology, like 5G technology.”

What’s your view on Zepp-LaRouche’s assertions? Share your thoughts in the comments section below.

Frequently Asked Questions (FAQs) about De-risking from China

Who warned about the consequences of Western economies de-risking from China?

Helga Zepp-LaRouche, the founder of the Schiller Institute, a German-based political and economic research institution, warned about the potential consequences of Western economies de-risking from China.

What is the Schiller Institute?

The Schiller Institute is a political and economic research group based in Germany, with members in 50 countries. It was founded by Helga Zepp-LaRouche.

What does de-risking from China mean in this context?

In this context, de-risking from China refers to efforts by Western economies to reduce their economic dependence on China, particularly in terms of trade and investment partnerships.

What might be the potential consequences of de-risking from China, according to Zepp-LaRouche?

Zepp-LaRouche warned that de-risking could lead to self-implosion of Western economies. She believes these efforts could backfire, causing more harm to the Western economies themselves than to China.

What was U.S. Treasury Secretary Janet Yellen’s stance on trade with China?

Janet Yellen, the U.S. Treasury Secretary, stated before the House Financial Services Committee that halting trade with China would be a “grave mistake” for the U.S. However, she affirmed the need to reduce risk but opposed the idea of total decoupling.

What is the Belt and Road Initiative (BRI)?

The Belt and Road Initiative (BRI) is a development strategy proposed by the Chinese government that aims to boost economic development across the Asia-Pacific region, Africa, and Europe through infrastructure development and investments. The initiative marks its 10th anniversary in 2023.

More about De-risking from China


Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!


EconoWatcher June 21, 2023 - 11:41 pm

BRICS is a force to reckon with, interesting how g7 countries are just realizing this now. gotta keep an eye on this

SavvyInvestor June 22, 2023 - 3:09 am

Yellen’s take is interesting. “Reduce risk? Yes. Decouple? Definitely not.” solid advice if you ask me!

SamTheMan June 22, 2023 - 4:04 am

never heard of the Schiller Institute before. Will chk them out now. good info here!

Anna_K June 22, 2023 - 7:51 am

I do agree with Zepp-LaRouche! Western economies are at risk if we de-couple from China. wise words.

GreenPea21 June 22, 2023 - 12:05 pm

All this talk of decoupling and de-risking… geopolitical stuff gets messy, doesn’t it. just hope for the best.

JohnDoe101 June 22, 2023 - 12:46 pm

not sure i buy this. Maybe de-risking is the right move after all? idk

Mike77 June 22, 2023 - 1:14 pm

So we’re dependent on China now, huh? didn’t realize it till this lady pointed it out!

tech_guru88 June 22, 2023 - 3:24 pm

China’s dominance in tech is def something we can’t overlook. They’re leading in patents and 5g tech… whoa!


Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.

Follow us


CrypTokenTop is a website dedicated to providing comprehensive information and analysis about the world of cryptocurrencies. We cover topics such as Bitcoin, Ethereum, NFTs, ICOs, and other popular crypto topics. Our mission is to help people learn more about the crypto space and make informed decisions about their investments. We provide in-depth articles, analysis, and reviews for beginners and experienced users alike, so everyone can make the most out of the ever-evolving world of cryptocurrency.

© 2023 All Right Reserved. CryptokenTop