
State of Asia Is Europe's Economy Under Existential Threat From China? A Debate.
A new industrial reality is reshaping Europe's economic future. China’s manufacturing juggernaut – once focused on low-cost consumer goods – has pivoted decisively toward the high-value sectors that have long defined European prosperity: automobiles, machinery, batteries, solar technology, steel, and chemicals.
The numbers tell a stark story. By late 2025, Germany's annual trade deficit with China approached $100 billion. BYD plans 2'000 European stores by late 2026. China controls over 80% of global solar production and 75% of battery manufacturing. Meanwhile, European industries face a perfect storm: Chinese overcapacity meets slowing U.S. demand following the 2025 tariffs, with no clear path forward.
Are European industries at risk of being hollowed out by China's state-backed expansion? Or is the European economy more resilient than these concerns suggest – capable of adapting, innovating, and maintaining its competitive edge? Does China's trajectory demand a fundamental shift in European industrial policy? Or should Europe trust in market forces and resist the siren call of protectionism?
This episode of the podcast features a recording of an Oxford Debate, held live in Zurich, on March 9, 2026. Four experts take sides in favor of and opposed to the debate motion: "Europe's Economy is under Existential Threat from China."
They are:
Camille Boullenois, Associate Director at Rhodium Group, analyzing China's economic system
Yanmei Xie, 2026 TOY Senior Fellow at Asia Society Switzerland and leading thinker on China's economic and foreign policies
Michael Laha, Senior Research Fellow focusing on China's technology policy at the German Council on Foreign Relations
John Lee, Director of East West Futures and researcher at the Leiden Asia Centre
Learn more about the speakers on our website and watch the full debate on the Asia Society YouTube channel here.
Stay up-to-date on all events and activities at Asia Society Switzerland: subscribe to the newsletter and support our work by becoming a member.
-
STATE OF ASIA is a podcast from Asia Society Switzerland.
Published: March 17, 2026
Host/Editor: Remko Tanis, Asia Society Switzerland
