Europe’s imperative: Reassess priorities in the China-US dynamic

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In an expected display of “scratchy harmony,” the European Union and the United States tried to show a united front in their dealings with China at the just-concluded fourth Trade and Technology Council in Luleå, Sweden, where the underlying disparities were quite palpable between the two sides. Amid the complex tapestry of opinions in the European bloc, one cannot deny the growing divergence of perspectives when it comes to the issue of China. 

While European commission president Ursula von der Leyen appears to have veered towards a more assertive stance, aligning herself with Washington’s firm position, not all countries are on board with such an approach. France and Germany, in particular, are hesitant to sever or curtail trade relations. This reluctance to fully embrace the US position speaks volumes about the nuanced dynamics at play and the careful considerations that European nations must navigate. An intriguing paradox emerges in Europe when some hawkish policymakers clamour for measures against China’s alleged “economic coercion”, driven primarily by apprehensions fuelled by Washington about overreliance on Chinese trade. 

Yet, curiously, these same individuals appear oblivious to the US’s exploitation of its economic and financial interests, along with its flagrant protectionist manoeuvres. What remains unseen is the perilous path of an EU subjected to the whims of its American ally, succumbing to a position of diminished strength and heightened dependence. This selective myopia raises essential questions about the motivations underlying Europe’s stance on China. Is it a genuine concern for fair economic practices, or a subtle manoeuvre to preserve its own interests in an increasingly intricate global landscape?

To construct a robust and prosperous future, European leaders must grasp the intricate interplay of power dynamics at play. Recognising the dangers inherent in aligning too closely with any single superpower is paramount. The pursuit of a balanced approach, grounded in pragmatism, will ultimately yield dividends, fostering a resilient EU capable of charting its course amid the complexities of the global stage. The EU’s recent move to downplay direct mentions of China unveils a perplexing conundrum, illustrating its ongoing internal deliberations on whether to align firmly with the hawkish stance of the US or prioritise its own interests. The subtle shift highlights the EU’s resolve to avoid relegating its relations with China to a mere derivative of China-US dynamics. The divergences between the US and the EU in their approach to China stem from their distinct sets of interests, underscoring that their shared values do not necessarily translate into complete convergence. 

As the EU grapples with this nuanced landscape, a realisation has taken hold in Europe — an understanding that clinging solely to values should not hinder the pursuit of strategic autonomy, nor deter the EU from boldly championing its own interests. This evolving mindset signals a growing appetite in Europe for a more independent approach, one that allows the EU to assert its own voice and carve out a path that best serves its unique needs. By striking a delicate balance between values and interests, the EU endeavours to establish itself as a capable player on the global stage, capable of navigating the complex terrain of international relations with astuteness and foresight.

The ideological fault lines between China and the West have been deftly employed by the US as a key instrument to rally the EU towards containment efforts against China. Yet, amid these manoeuvres, Europe finds itself confronted with a critical imperative — to bolster its strategic autonomy and safeguard its own interests against the backdrop of American exploitation. Europe’s vulnerability has been further exposed in the wake of Russia’s war in Ukraine, as it grapples not only with geopolitical and economic ramifications but also with the blatant exploitation of its economic interests by the US. 

While the US strategically exports costly energy resources such as liquefied natural gas to Europe, it simultaneously undermines the continent’s manufacturing prowess through green subsidies and other means. This calculated approach, facilitated by the Inflation Reduction Act, creates an environment that deems alternative investment destinations as “unfavourable”, effectively enticing European manufacturers to shift production and investment to the US. In the face of such multifaceted problems, some European leaders recognise the need to fortify the EU’s strategic independence, establishing a robust framework that shields its economic interests and preserves its manufacturing capabilities. The socioeconomic repercussions reverberate across Europe. The soaring energy prices and relentless inflationary pressures have unleashed havoc upon the continent’s once thriving economy. People find themselves grappling with the unsettling reality of an increasingly arduous existence, and in their desperation, they take to the streets in protest. 

Capital, too, is fleeing to the US, which deftly capitalises on Europe’s shifting energy dependencies. As a beneficiary of this exodus, the US emerges as a clear winner in this economic chessboard. To compound matters, businesses, unable to bear the brunt of America’s exploitative Inflation Reduction Act, are compelled to relocate, leaving Europe grappling with the twin blows of job losses and the erosion of its once vibrant industries. The aftermath is an unsettling landscape, characterised by a hollowing out of Europe’s economic fabric and a sense of desolation in its manufacturing sectors. As the continent confronts this stark reality, it must deal with the pressing need to recalibrate its strategic choices, exploring avenues for self-sufficiency and revitalising its industries to reverse the tide of economic decline. Only through such concerted efforts can Europe hope to reclaim its rightful place as a thriving hub of economic activity. By deftly navigating these treacherous waters, Europe can chart a course that safeguards its own prosperity and rejects being a pawn in the ideological tug-of-war between China and the US.

Dr Imran Khalid is a freelance columnist on international affairs based in Karachi, Pakistan. He qualified as a physician from Dow Medical University in 1991 and has a master’s degree in international relations from Karachi University.

The views expressed are those of the author and do not necessarily reflect the official policy or position of the Mail & Guardian.