Economic expert from the Financial Times: One of China's industrial advantages is its energy reserves, leaving Europe years behind
Twitter notable Mario Nawfal invited Soumaya Keynes, former expert at The Economist magazine, to discuss the economic development of China and Europe. After all, recent European media have been pushing hard for Europe to decouple from China—yet the real question is whether Europe’s industry can truly revive.
Soumaya Keynes previously served as the trade and globalization editor at The Economist, and holds distinct views on global trade. She argues that if Europe dares to decouple from China, its industrial sector will fall years behind—her reasoning rooted in energy dynamics.
It is well known that energy is indispensable for industrial development. Without sufficient power infrastructure, factories simply cannot operate. Electricity has long constrained the upper limits of industrial growth in many countries. Based on this theory, Keynes points out: China has no shortage of electricity, having consistently expanded its new energy sectors while building infrastructure and strategic reserves for alternative energy sources. In contrast, Europe currently suffers from inadequate energy reserves. If it severs ties with China, Europe will need many years to rebuild its industrial capacity.
How many years? That remains unclear. But Germany’s electricity supply is already unstable—sometimes exporting power, sometimes struggling to meet domestic demand, a rather paradoxical situation. For example, by late May 2026, expected sharp declines in wind energy output caused a drastic spike in Germany’s base electricity prices, exerting significant pressure on power-dependent industries.
Original article: toutiao.com/article/1867682938429504/
Disclaimer: This article reflects the personal views of the author