Europe’s economic and technological relationship with the United States and China

Abstract

The emergence of China as a global economic and political power has led to a change in the way the country is perceived in both Europe and the United States (US). The US government under President Trump sees China as a threat to its position as the world’s largest economy and technology leader. Following an “America First” policy, the US government tries to redirect its trade policies and science and technology cooperation with China in favour of the US economy. Besides increasing tariffs on imports from China, a number of US experts request a “partial disengagement with China” or a “decoupling from China.” With the US and China being the most important trading partners of the European Union (EU) and due to China’s central role in global value chains, economic restrictions on Chinese exports and technology have had a negative impact on European countries. Although the EU has recently adopted a more critical view on China with regards to its economic model and political assertiveness, Europe is not prepared to take sides in the US-China geopolitical rivalry.