Recalibrating Transatlantic Relations: Should Europe Strengthen Ties with China Amid U.S. Uncertainty?
- Insights Digest
- Mar 20
- 3 min read
Updated: Mar 23
Ciara Muzio, 19/03/2025
Background & Context
For decades, Europe has relied on the United States for security and economic stability. The
transatlantic alliance, particularly through NATO, has ensured Europe's defence and strong
trade relations have boosted its economy. However, recent shifts in U.S. foreign policy have
led European leaders to reassess their global partnerships. With Trumps administration adopting more protectionist trade policies and an unpredictable diplomatic approach, recent reports from Brussels indicate that European leaders are exploring ways to deepen economic ties with China while navigating the complexities of such a shift. This development aligns with scholarly research suggesting that U.S.-China strategic competition has significantly impacted the EU’s positioning in
global politics.
Economic Considerations
China is the EU's largest trading partner, with strong ties in automotive, technology, and infrastructure. Germany, the EU's top economy, prioritizes business with China due to its export dependence. However, concerns remain over trade imbalances, intellectual property theft, and economic overreliance. The U.S.'s recent imposition of tariffs on European goods has further prompted EU states to consider strengthening trade with China as a counterbalance. The UK’s recent move to collaborate with China on climate initiatives further underscores the economic importance of the relationship. While economic pragmatism may drive closer ties, European leaders must weigh the risks of increasing dependence on Beijing’s economic policies. Europe finds itself caught between economic incentives and strategic security concerns as China's role in global trade evolves.
Strategic and Security Concerns
Security remains a major concern in any recalibration of European alliances. NATO’s framework had always relied on the U.S., any significant drift towards China could create friction within the alliance. Additionally, China's growing influence in Europe through infrastructure projects and technology investments, such as 5G networks and port acquisitions, has raised alarms in Washington and among European security analysts. With China and the US’s (new) stance on Russia and its reluctance to condemn the invasion of Ukraine adds another layer of complexity, with EU nations finding it difficult to navigate who to turn to in such political turmoil.
Political and Ethical Considerations
Beyond economic and strategic factors, Europe must also contend with China’s human rights record. The EU has imposed sanctions on Chinese officials over human rights abuses in Xinjiang, and concerns over the erosion of democratic freedoms in Hong Kong remain prominent in European policy debates. Additionally, European governments remain divided on China, with France favouring reduced dependence and Germany advocating for greater economic engagement. The European Parliament has debated tighter restrictions on Chinese investments, reflecting growing scepticism about Beijing’s long-term geopolitical ambitions. Despite economic incentives, aligning more closely with China could create ideological and political tensions within the EU. China's mixed diplomatic approach, including skipping key EU summits while maintaining high-level economic engagement, demonstrates the nuanced relationship.
Outlook
If U.S.-EU tensions persist, Europe may pursue a more independent foreign policy, balancing relations with both China and the U.S. China sees Europe as a critical partner in shaping a multipolar world order, but European leaders must carefully navigate economic interests, security alliances, and democratic values. Potential policy recommendations include diversifying trade partnerships, ensuring transparency in foreign investments, maintaining NATO commitments, and leveraging China’s economic ties without compromising Europe’s long-term strategic autonomy. As global power dynamics shift, Europe’s foreign policy decisions will play a crucial role in defining its position in an evolving international order.
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