Xi, Trump and Putin take turns to pummel Europe
Trade and security fears stalk the halls of power in the capitals of the EU and the rest of Europe
Europe faces an existential economic crisis as the fallout of China Shock 2.0 threatens to shatter its manufacturing base. Latest numbers released by Beijing today showed that the trade surplus hit a record US$1 trillion in the first 11 months of the year.
The tsunami-style flood washed over the European Union bloc, with exports climbing by almost 15% in November. It was the fastest rise since the summer of 2022. France, Germany and Italy suffered a double-digit jump, with domestically-made cars squeezed by price wars.
“The euro area is particularly exposed to the negative effects of increased Chinese goods, which threatens to widen the euro area bilateral trade deficit,” Giovanni Pierdomenico, an economist at Goldman Sachs, said, according to Euronews.
“While targeted action against Chinese products is possible … [this] will need to be weighed against Europe’s reliance on China for several critical raw materials,” a series of reports by the American-based investment bank revealed.
It argued that Europe was too weak to be reliable.
Semafor
Double whammy:
- Yet China’s predatory trading practices are not the only challenges facing Europe.
- Once the United States’ closest ally, it is now considered more of a foe than a friend.
Delve deeper: “Washington’s new security doctrine makes explicit that Europe is no longer a US ally. The Trump administration has been critical of its erstwhile partner, but its National Security Strategy published last week makes that stance official,” Semafor stated.
Between the lines: “It argued that Europe was too weak to be reliable, that the continent was facing ‘civilizational erasure’ via mass immigration, and that the EU undermined national liberty,” the online global media group pointed out today.
Big picture: With President Donald Trump in the White House, this should come as no surprise. His authoritarian streak plays well with China’s Xi Jinping and Russia’s Vladimir Putin. Three old men that give geriatrics a bad name.
Bottom line: “[The] US flips history by casting Europe – not Russia – as villain in new security policy,” The Wall Street Journal screamed in a headline last week, adding that the “language” on China had also softened.
China Factor comment: For Europe, this has always been the nightmare scenario with Beijing and Moscow on the prowl. But the facts are simple. Washington can no longer be trusted. It is time for Berlin, Brussels, London and Paris to face up to the new reality.