The Scientific Council for Government Policy (WRR) warns that the Netherlands and Europe must urgently revise their trade policy as countries like the United States and China increasingly use economic power as geopolitical leverage. In its report to the cabinet, the WRR argues that the EU should enforce far stricter conditions on China and apply the same requirements and restrictions that Chinese authorities impose on European companies.
Dependency
According to the WRR, failing to adjust trade policy could lead to the erosion of European industry, increased dependency on foreign powers, and heightened risks to privacy and environmental protection. The council also stresses the need for stronger and cohesive innovation policies. European countries currently operate too independently, and more alignment is critical, notes WRR. Consistent policy is needed across all phases of innovation, from breakthrough technologies to market introduction. Governments should also set clear and ambitious goals, enabling the parties to take concrete steps.
Trade Protection
The WRR calls for more effective trade protection measures against China. Current EU instruments do not sufficiently ensure a level playing field for European companies. Reducing administrative burdens and shortening investigative procedures could help implement measures more quickly. Another option, the Council suggests, is reversing the burden of proof. In this scenario, foreign companies would need to demonstrate the absence of state aid before entering the European market.
Critical Technologies
The WRR emphasises that Europe must strengthen its position in critical technologies such as digital services and energy systems. Greater autonomy in these areas would reduce vulnerability to pressure from countries like China and the United States.
While the proposed measures may be costly, the WRR argues that these expenses must be weighed against the potential damage caused by geoeconomic coercion, sudden trade shocks, and long-term economic losses. “All options will actually have to be considered, even if they are painful”, the report concludes.
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