- Europe has successfully dealt with Putin's gas embargo, which proved to be less harmful than anticipated.
- Policymakers must now consider how to reduce dependency on China for imports.
- Europe's dependence on Russian gas was reckless, accounting for 25% of energy consumption.
- European households and firms demonstrated a remarkable ability to adapt to changing circumstances.
- Replacing imports with domestically produced goods and diversifying imports are two approaches to de-risking trade with China.
Europe has shaken off Putin’s gas embargo
Europe has successfully dealt with Putin's gas embargo and must now de-risk its trade with China. Policymakers should consider producing goods domestically or diversifying imports.