It did not take long for senior European Union leaders to reverse course and question American Hegemony. Donald Trump and Elon Musk, disguised as world bullies and far-right agitators have managed to break a bond that lasted for the last 75 years between the two sides of the Atlantic Ocean. As a result, Europe is about to fall into Peking's arms and you can only blame the Americans for it.
The Europeans anticipated the second Trump presidency with awe and they were justified by the outcome. Yet, they never imagined how damaging Trump's talk about Greenland, or the threat of strong tariffs, and Musk's promoting far-right populist politicians in Germany and the United Kingdom would be for their economic and political stability until reality struck them hard. Now, it seems that bullying behavior has alienated them enough to rethink their always complex relations with China.
It all started with another rant: "With the European Union, we have a trade deficit of $350 billion. They don't take our cars, they don't take our agricultural products, they don't take anything," Trump stated in January.
The rant must have sent shivers to European capitals as all negotiations Brussels had ongoing with Chinese authorities were immediately sidelined, starting with the halt of discussions on tariffs for electric vehicles manufactured in the Asian country.
Yet, according to AP, this latest development is not necessarily bad news for the government of Xi Jinping. Trump's attitude towards bilateral trade and Greenland, may cause the EU to soften the strict line that has recently guided its policy towards China, marking a thaw in their relations. The Chinese will follow suit as they seek rapprochement rather than tensions to mark the very symbolic 50th anniversary of diplomatic relations between China and the EU.
As Yao Ling, director of the European Institute of the China Academy of International Trade, under the Chinese Ministry of Commerce, explains: "Trump's return to the White House has increased instability and uncertainty. China and the EU, as two of the world's largest economies and staunch supporters of economic globalization and trade liberalization, can offer stability for inclusive global economic growth through much stronger cooperation."
This cooperation approach was already highlighted in January, a few days before Trump's inauguration, by President Xi Jinping when he spoke on the phone for the first time with Portuguese António Costa, who took office in December as President of the European Council.
During that conversation, both parties decided to hold a summit. This will be the first since late 2023, when trade tensions with Brussels escalated due to the investigation into Chinese subsidies for electric cars, which would end last October with the Commission imposing tariffs of up to 35% on vehicles manufactured in China.
Yao Ling believes that "Beijing and Brussels need each other, especially in these times of global uncertainty". "The EU's economic growth still depends on access to China's huge market, and it is worth remembering that during the European sovereign debt crisis, the strong growth in exports to China and the influx of Chinese capital were crucial in driving the EU's economic recovery. According to statistics, bilateral trade supports the employment of three million people in the EU and six million in China."
According to AP and Chinese customs, trade between China and the EU in 2024 amounted to $785.8 billion, a 0.4% year-on-year increase, of which China's exports to the EU reached $516.4 billion (a 3% increase), and imports from the EU stood at $269.4 billion (a 4.4% decrease). The EU is China's third-largest export destination, while China remains the largest source of imports for the bloc.
There is also a change of tone by the European Commissioner Ursula von der Leyen who despite her previous critical position towards China, now left the door open to improving bilateral relations.
"We will continue to reduce the risks in our economic relationship, as we have done in recent years, but there is also room to interact constructively with China and find solutions that benefit both parties," Von der Leyen stated. "I believe we can reach agreements that could even expand our trade and investment ties. It is a very fine line we must walk, but it can lead us to a fairer and more balanced relationship with one of the world's economic giants."
After an intervention at the Davos Forum, this was the second time in 15 days that Von der Leyen has moved away from the attacking rhetoric she used to have towards China, just like Trade Commissioner Maros Sefcovic, who said a few days ago in the European Parliament that "there was room to expand our trade and investment ties with China."
China wants to talk and Europe is ready to negotiate and you can only blame the Americans for it.
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