What does “de-risking” trade with China mean?

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What does “de-risking” trade with China mean?
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“De-risking” is sometimes seen as a label for a more commercially minded approach to China than the tougher decoupling that is popular with hawkish American policymakers

, through “stress tests” and supply-chain audits. The bloc plans to cultivate alternative trading partners, Mrs von der Leyen said, including India, Australia and the Association of South-East Asian Nations. The Commission has recently proposed the Critical Raw Materials Act, which aims to increase mining of resources like lithium and graphite within theand diversify its foreign suppliers.

“De-risking” is sometimes seen as a label for a more commercially minded approach to China than the tougher decoupling that is popular with. But the distinction is not so clear in practice. America’s national security adviser, Jake Sullivan, has been happy to borrow the term to describe his government’s approach, which includes stricter export controls than Europe has adopted.

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