Intro: Britain’s strategy to reduce China dependence could offer Europe a practical pathway, with India positioned as a key diversification partner.
London
Britain is emerging as Europe’s front-runner in reducing dependence on China by diversifying trade and investment ties, with India emerging as a potential partner.
An article in Eurasia News argues that the European Union’s reliance on China for goods and critical raw materials creates vulnerabilities extending well beyond the bloc’s trade deficit. Heavy dependence can constrain Europe’s strategic autonomy, particularly on sensitive issues including Taiwan, human rights and trade disputes.
The article says European policymakers may hesitate to challenge Beijing strongly when economic relationships depend on Chinese supplies. The vulnerability is particularly significant in sectors such as electronics, solar components, pharmaceuticals and rare earths, where China remains deeply embedded in supply chains.
Britain’s approach could offer other European countries a template for gradually reducing that exposure. Rather than seeking an immediate, wholesale replacement of Chinese suppliers, the report recommends beginning with selected sectors where alternatives are available and India can offer scale.
India’s electronics assembly and components industry has expanded rapidly, particularly in Tamil Nadu and Karnataka. The country could also increase its role in supplying active pharmaceutical ingredients, building on its established generic medicines industry.
Textiles provide another opportunity, with manufacturing infrastructure in Gujarat and Tamil Nadu positioned to support European demand.
The article suggests that individual EU member states could initially deepen economic ties with two or three Indian states rather than waiting for a single bloc-wide framework.
Such a state-level approach could allow Europe to test supply-chain diversification gradually while building investment relationships tailored to specific industrial strengths.
“The UK’s China playbook offers a template the rest of Europe would do well to follow.” – Piyush Goyal The report argues that India can help diversify European supply chains without requiring an abrupt break from China. Electronics, pharmaceuticals and textiles offer immediate opportunities, while partnerships between individual European countries and Indian states could make diversification
