China and Europe:

The EU, the UK, and several European countries have developed strategies to deal with China, yet Beijing’s rise, its support for Russia’s war effort in Ukraine, and the growing unreliability of Donald Trump’s United States as an economic and security partner have sharpened the dilemmas facing European policymakers. Trade between China and Europe—including the UK—now accounts for more than one-third of global trade, with the balance heavily in China’s favour and its surplus widening. Despite repeated expressions of concern from Brussels and London, these imbalances remain unaddressed. The challenge for Europe lies not only in the sheer size of its trade deficit, but also in its dependence on China for a wide range of critical goods. China’s industrial overproduction continues to undercut European manufacturers both in their domestic markets and abroad.