Denmark: De-risking paves the way for pragmatic reengagement with China

As part of its new strategy to pragmatically re-engage with China and pursue economic opportunities in a “clear-sighted” manner, Denmark’s coalition government has embraced the European Union’s de-risking approach to tackling undesirable vulnerabilities and dependencies. Having adopted several national de-risking measures in recent years, Copenhagen now envisages an increasingly central role for Brussels in managing China-related risks and providing a broader regulatory framework. This balancing act of pragmatic re-engagement and de-risking appears aimed at reassuring both Danish companies and the security policy community amid increased geopolitical risks and growing demands for supply chain resilience. The new approach follows a five-year period of heightened tensions between Denmark and China, driven in particular by US-China great power rivalry and the hardening of the Chinese regime under Xi Jinping.