US and China Relations Tracker

"Navigating the US-China-Europe Trilemma: Challenges and Opportunities in 2025"


Listen Later

In 2025, both the United States and Europe will navigate a complex landscape of adjustments in their relationships with China. With a potential return of Donald Trump to the presidency, the US may experience renewed emphasis on "de-risking" and trade disputes. Trump's previous administration was marked by a hardline stance on China, focusing on trade tariffs and restrictions on Chinese tech companies. Should he return, similar policies are expected to reemerge, leading to further economic tensions.

Meanwhile, Europe is also preparing for significant changes, as the continent seeks to balance its economic interests with its political values in its dealings with China. European nations have been increasingly concerned about their dependency on Chinese markets and technology, leading to discussions about "de-risking" their economic ties. This involves diversifying supply chains and increasing scrutiny of Chinese investments in sensitive sectors, like technology and infrastructure.

The China-focused think tank MERICS has identified several top risks associated with China in 2025, which highlight the broader challenges the US, Europe, and other global players may face. These risks include China's economic resilience, the expansion of its technological influence, and its assertive foreign policy stance. Beijing’s economic strategies, such as the Belt and Road Initiative, continue to extend its global reach, while its domestic policies aim to stabilize and grow its economy despite external pressures.

Moreover, China has intensified efforts to lead in areas like AI and green technologies, placing additional pressure on Western countries to bolster their own capabilities in these fields. This technological race exacerbates existing trade tensions and fuels a competitive dynamic between China and other leading economies.

In response, the US and Europe are likely to pursue closely aligned policies that promote economic independence from China while seeking diplomatic channels to manage their expansive engagements with Beijing. This will involve strengthening transatlantic ties and collaborative efforts in areas like technology standards, trade regulations, and defense strategies.

Simultaneously, domestic factors within China, such as demographic changes and demands for political reform, could influence Beijing's international posture. The Chinese government faces challenges related to its aging population and the need for sustainable economic growth, which may impact its foreign policy agenda. These internal dynamics will be key elements to watch as global geopolitical relationships evolve.

Amidst these transformations, US-China relations will remain a focal point of global affairs, with the potential to influence international trade, security, and economic policies. As nations recalibrate their strategies in light of these developments, 2025 promises to be a pivotal year in the ongoing evolution of global power structures and economic partnerships.
...more
View all episodesView all episodes
Download on the App Store

US and China Relations TrackerBy Quiet. Please