China and the EU brace for uncertainty under a Trump presidency

As Donald Trump eyes a return to the White House, both China and the European Union (EU) are contemplating the potential disruptions to their global strategies.

As Donald Trump eyes a return to the White House, both China and the European Union (EU) are contemplating the potential disruptions to their global strategies. Trump's previous tenure was marked by aggressive policies that reshaped U.S. relations with these regions, leaving a lasting impact on geopolitical and economic dynamics. A second term could intensify these tensions, presenting unique challenges for both Beijing and Brussels.

During Trump’s presidency, U.S.-China relations hit their lowest point in decades. His administration launched a trade war featuring steep tariffs, restrictions on Chinese technology firms, and broader efforts to decouple the world's two largest economies. A Trump return could signal the continuation—or even escalation—of these policies, placing Beijing under significant strain.

China is already grappling with a slowing economy and domestic challenges such as a housing crisis and rising youth unemployment. Renewed tariffs or sanctions under Trump could exacerbate these vulnerabilities, further hindering its post-COVID-19 economic recovery.

Trump's focus on curbing China’s technological advancements—evidenced by bans on Huawei and restrictions on access to U.S. semiconductor technology—would likely intensify. This could further pressure China’s tech sector and complicate its ambitions for technological self-sufficiency.

Additionally, a more confrontational U.S. stance on issues such as Taiwan, the South China Sea, and human rights could heighten tensions. For Beijing, this would necessitate a delicate balance between asserting its interests and avoiding direct conflict with Washington.

The EU also experienced a turbulent relationship with Trump during his presidency. His "America First" policies often sidelined transatlantic cooperation, creating significant challenges for European allies. Trump's disdain for NATO, trade disputes with European nations, and withdrawal from global agreements like the Paris Climate Accord created rifts that the EU is still working to repair. A Trump comeback could reignite these difficulties.

Trump's skepticism of NATO and preference for bilateral deals over multilateralism could undermine European security. With the war in Ukraine ongoing, the EU might face increased pressure to bolster its defense capabilities independently. Furthermore, Trump’s past complaints about EU trade practices led to tariffs on European goods, a move that could resurface under a new administration and harm key industries in Germany and France, destabilizing the bloc’s economy.

The EU has positioned itself as a leader in climate policy, often stepping into the void left by Trump’s retreat from global climate initiatives. A renewed Trump presidency could hinder international climate cooperation, complicating the EU’s green agenda and efforts to lead on sustainability.

For both China and the EU, a second Trump term could accelerate the fragmentation of the global order. His unpredictability and preference for zero-sum diplomacy often left allies and rivals scrambling to adapt. A weakened multilateral system, coupled with increasing U.S. unilateralism, could create an environment of greater uncertainty and diminished global influence for both actors.

In response, China and the EU may seek to strengthen partnerships elsewhere to mitigate the effects of U.S. policies. For China, this could mean deepening ties with the Global South and Russia. For the EU, fostering closer cooperation with nations like Japan, India, and Australia might become a priority.

Though Trump has yet to take office, the potential consequences of his return are already shaping the strategic calculations of both China and the EU. For Beijing, the focus will be on mitigating economic and geopolitical risks while pursuing long-term ambitions. For Brussels, the challenge lies in maintaining unity within the bloc while navigating an increasingly complex international landscape.

Ultimately, another Trump administration could reinforce the need for both China and the EU to diversify their strategies and reduce reliance on the United States. In an era of great power competition and shifting alliances, the ability to adapt quickly will be critical as both actors face an increasingly uncertain future.

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