Europe's perception of China's economic dominance as an existential threat, based on subsidies and industrial policy, may be misguided. Experts suggest the focus should be on understanding the nuances of China's economic strategy rather than viewing it solely as a threat.

Europe’s political and business leaderships appear to have concluded that China’s economic dominance represents an existential threat – not from intrinsic competitiveness but from subsidies, technology theft, state-owned enterprises and a pervasive industrial policy. Cecilia Malmstrom, former European Commission member and a member of the European Parliament, wrote this week about “an ever more aggressive China”, which “seems to be entering a new phase of industrial policy with an increase of...