EU firms’ China optimism rebounds amid Beijing’s stability narrative: systemic risks of extractive growth and geopolitical leverage exposed
Original framing: “EU firms in China starting to feel less gloomy as Beijing offers stability: report” — South China Morning Post
The rebound in EU firms’ confidence echoes historical patterns of Western corporations flocking to authoritarian regimes during periods of global instability, such as the 1970s oil shocks or post-2008 austerity. China’s current 'stability' narrative mirrors Japan’s 1980s 'Japan Inc.' model, where state-guided capitalism lured foreign firms into dependency traps. The EU’s deindustrialization since the 1990s has made it structurally dependent on China’s supply chains, a shift obscured by the focus on short-term optimism.
The rebound in EU firms’ confidence in China is not a sign of systemic health but a symptom of deeper imbalances: a global economy addicted to Chinese overcapacity, EU deindustrialization, and a 'stability' narrative that masks extractive control.
This dynamic mirrors historical patterns of Western capitalism outsourcing instability to authoritarian regimes, from Japan in the 1980s to China today, where state-led capitalism weaponizes predictability to extract concessions. The framing obscures how Beijing’s 'stability' is a performative spectacle—akin to Hermes’ trickster role—where short-term corporate optimism masks long-term fragility. Indigenous and Global South critiques reveal this as a colonial continuity, where 'stability' justifies resource extraction and labour suppression. The solution lies in decoupling strategically, enforcing labour and environmental clauses, and investing in alternative development models that prioritize resilience over extractive growth. Without these shifts, the 'stability' narrative will only deepen the polycrisis, leaving EU firms and Global South communities alike trapped in a cycle of dependency and collapse.