China-Europe Relations Amid the Trump Administration and the Evolving Global Order 

# By Prem Sagar Poudel 

The incoming Trump administration is poised to bring significant transformations in U.S. foreign policy and global geopolitics. This administration could end post-World War II US multilateralism, widen the gap in Europe-US relations, end the Ukraine war, and restart the trade war with China. However, the economic pressure strategy against China is unlikely to succeed. Furthermore, the U.S. will push its allies, particularly in Europe and East Asia, to bear a greater financial burden for their own security.

Europe’s Crisis and China’s Growing Strategic Role

The Trump administration’s policies will present severe challenges for Europe. The European Union (EU) has made significant economic, diplomatic, and military investments in the Ukraine conflict. However, a U.S.-led resolution to the war may result in a humiliating outcome for Europe. In addition, Trump’s pressure on NATO member states to increase defense expenditures will further burden the European economy.

On the other hand, Trump’s trade policies pose a serious worry for Europe. The Trump administration has signaled additional tariffs on European products. Since 2009, U.S. GDP per capita has nearly doubled, while that of the Eurozone has grown by less than 20%. Moreover, Europe has not made significant progress in the field of technology, and because of this, it seems difficult to compete with China or U.S.

In such a situation, relations with China will become more strategically important for Europe.
The European approach of maintaining neutrality or aligning with U.S. efforts to contain China is no longer sustainable. The US strategy of isolating China (e.g., European countries succumbed to US pressure in the 5G and Huawei case) has not been seen as beneficial for Europe.

A New Diplomatic Approach: Engaging with China

Europe must recalibrate its policy toward China. This means fostering a relationship built on mutual respect and strategic cooperation, rather than confrontation. That means, on sensitive issues like Hong Kong and Xinjiang, Europe has to develop the tendency to be seen respectfully in China’s policy. New British Prime Minister Keir Starmer’s pragmatic approach to China can be exemplary in this context.

China has made it clear that Europe has yet to acknowledge it as a peer global power. However, in order to secure its economic future, Europe must accept China on an equal rank.

China’s Dominance in the Electric Vehicle Industry

Europe used to think of China as economically weak, but this thinking is no longer relevant.
The ongoing crisis in Europe’s electric vehicle (EV) industry serves as a stark example. China has taken a significant lead in this area through long-term strategic planning, advanced production systems, strong supply chains, innovation, and cost-efficient manufacturing.

Europe appears to have adopted a strategy of imposing tariffs on the Chinese EV industry, but this will not solve the problem. Instead, European EV manufacturers must cooperate with Chinese capital, technology, and supply chains.

Green Technology and the Future of Technology Transfer

Europe once positioned itself as a leader in green technology, but that status has now shifted to China. In areas such as solar energy, wind power, energy storage, and EV production, China has assumed a dominant global position.

Europe should welcome Chinese investment just as China once leveraged Western technology to drive its modernization. Now, Europe itself has reached a stage where it has to accept the transfer of Chinese technology.

China’s Place in the New World Order

For Europe to secure its long-term economic stability, it must embrace China as a partner, rather than a rival. Europe can move forward according to the new reality only if it can abandon its old prejudices.

As time progresses, it will become increasingly evident that Europe cannot sustain its economic and technological standing without cooperation with China. The time has come for Europe to learn from China’s success and actively integrate itself into a more multipolar world order.