The Effects of Geoeconomics Trends on European Union Industrial Competitiveness

Filipović, Sanja (2025) The Effects of Geoeconomics Trends on European Union Industrial Competitiveness. In: Risks for Serbian Foreign Policy in the Fragmentation of the International Order – Actors, Processes, and Outcomes. Institute of International Politics and Economics, Belgrade, pp. 160-177.

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Abstract

Globalization and the decades-long liberalization of goods and capital flows, together with the strongly imposed rights of foreign investors, have led to the relocation of production to countries with lower production costs. As a result, deindustrialization began in many developed industrial countries, which, together with the unequal distribution of resources, led to the redirection of industry to other countries. There was a change in the redistribution of competitiveness and the creation of new centers of technological power. It is evident that the USA and the EU have been losing competitiveness with China for years, primarily in the auto industry, but also in the areas of new green technology. Such changes were also reflected in the state of trade balances, and the new reality is illustrated by the record amount of the US trade deficit in 2024. While the new US administration is struggling to regain competitiveness by imposing high tariffs, the EU and China have reacted with countermeasures. However, in this struggle, the position of EU countries and China is not the same. The competitiveness of European industry is further threatened by high energy prices and import dependence on rare minerals from China, while China is self-sufficient in resources and the meantime has taken a leading position in certain green technologies. The aim of this work is to determine the key changes that affect the process of deindustrialization of the EU and to determine the competitiveness of the EU in the area of clean energy technologies

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