EU's dilemma: To counter or balance transatlantic shock wave

The Donald Trump administration, which is embracing a realpolitik stance, sees the progressive and liberal values that the European Union still champions as outdated.

That divergence reveals a growing rift in the transatlantic partnership based on so-called common values that have bound the EU to the United States since the end of World War II.This ideological division has far more profound impacts than trade or defense frictions.

Due to the lack of activity in the financial markets, insufficient investment in technological research and development as well as supporting infrastructure, the absence of industrial policies that encourage risk-taking and innovation, and excessive regulation in data privacy and environmental protection, the EU has lost its leading position in technology. This, coupled with exacerbating security problems, has sent the bloc into a downward spiral.

On the one hand, the EU is heavily reliant on its alliance with the US, and on the other, it proclaims itself to be a champion of multilateralism. It is thus stuck in a series of dilemmas: While it pursues strategic autonomy, it is unable to break free from its dependence on the US; it champions multilateralism yet is compelled to follow the US' "de-risking" strategy, which goes against the trend of globalization; and while it is struggling to inject new momentum into its sluggish economy, the bloc remains hesitant about deepening cooperation with China in technology and emerging industries.

The shock wave the Trump administration has sent has brought transatlantic relations to the brink of collapse, and the EU may adopt a "soft balancing" strategy or an "adaptation" strategy in response to Trump's policies.

The "soft balancing" strategy advocates countering US influence through multilateral mechanism and expanding collaborations with other global players, while the "adaptation" strategy suggests compromising to align with US demands.

Countries represented by Hungary and Poland advocate "accommodation", believing that compromise should be made as soon as possible to repair relations with the US.They fear that clashes with the US would jeopardize European security.

Polish Prime Minister Donald Tusk recently criticized French President Emmanuel Macron's statement of "introducing some kind of competitive game between the EU and the US" as a futile effort, and proposed to ramp up Europe's defense budgets to ease the transatlantic tensions. Hungarian Prime Minister Viktor Orbán voiced his support for Trump after the US president's furious exchange with Ukrainian President Volodymyr Zelensky in the White House.

The "adaptation" strategy implies that the US will continue to hold sway over the EU. When Trump turns his focus to China, the EU may follow the US closely in policies aimed at curbing China's rise.

France and Germany once jointly adopted the "soft balancing" strategy, achieving milestones such as the signing of the Iran nuclear deal. During Trump's first term, with the Franco-German cooperation at the core, the EU sought to expand its ties beyond transatlantic relations to counter the uncertainties brought by US trade protectionism and isolationism.

In this sense, the EU did not fully join the US in decoupling from China, instead opting for a softer approach of "de-risking" to maintain cooperation with China. And in this way, the EU aimed to enhance its economic competitiveness and mitigate potential impacts from the US sanctions or trade frictions. This reflects the EU's "soft balancing "strategy and multilateral diplomacy.

The EU's US policy will not only shape the future of Europe, but also have a significant impact on the future international order. Specifically, on the issue of EU-China cooperation, political forces favoring the "soft balancing" strategy and greater European autonomy advocate more cooperation with China to foster genuine multilateralism.

The EU should be aware that Trump's second term will not only widen the transatlantic divide in trade and security but also deepen their rift in values. The ruptured relations between the US and the EU will not only have a major impact on both sides, but also threaten global responses to challenges such as climate change and disarmament. To prevent a regression in global governance, the EU should work with China to steer the international order toward a more just and equitable direction.

Although some European politicians clinging to a Cold War mentality remain vigilant against China, sanctioning some Chinese companies which they claim provide support to the Russian military and imposing tariffs on Chinese new energy vehicles, China is committed to resolving issues through dialogue and consultation.

And as the world's second-largest economy, the leading industrial nation, and a front-runner in green technologies, China shares profound common interests with Europe in areas such as the green transition and global governance.

Thus, the EU can further its cooperation with China in advancing the green transition and bringing an end to the Ukraine crisis. On the one hand, China has been expanding imports by opening up the Chinese market to provide broader market opportunities for European businesses. On the other hand, China's efforts to stabilize global industrial chains and seek peaceful resolutions to conflicts stand in stark contrast to the US' trade protectionism and profiteering from geopolitical conflicts.

China practices a global governance philosophy featuring extensive consultation and joint construction with shared benefits, upholds genuine multilateralism, and promotes the democratization of international relations. As Chinese Foreign Minister Wang Yi said at the Munich Security Conference, "China upholds true multilateralism and advocates the vision on global governance featuring extensive consultation and joint contribution for shared benefit … China has always seen in Europe an important pole in the multipolar world. The two sides are partners, not rivals".

To counter the shock wave from the Trump administration, the EU should rise above traditional alliance mentality and ideological prejudices, and work with China to deepen strategic communication and mutually beneficial cooperation, and steer the world to a bright future of peace, security, prosperity and progress.

Wang Bingjie is a lecturer with the School of Foreign Studies at University of Science and Technology Beijing. Xiong Wei is a professor with the Department of Diplomacy at China Foreign Affairs University. The authors contributed this article to China Watch, a think tank powered by China Daily. The views do not necessarily reflect those of China Daily.

Contact the editor at editor@chinawatch.cn.