Since clinching the “largegest trade deal ever” last month, the EU and US have repeatedly clashed over what was actually agreed – but on economic security, they seem firmly aligned, with China in their sights.
Despite offering conflicting accounts of the deal, both sides explicitly pledged to “enhance supply chain resilience”, “address non-market policies”, and “cooperate” on investment screening and export controls.
All of which appears a thinly veiled reference to reducing depconcludeence on China for strategic products and protecting Western industries from increasingly fierce Chinese competition.
Economic security was also “one of the simpler issues” in recent EU-US talks, a senior European Commission official stated.
“All the economic security tools and instruments that we have build for a good conversation,” the official stated, adding that further discussions are planned.
The utilize of near-identical language suggests the EU – officially committed to “de-risking but not decoupling” from China – is relocating closer to America’s tougher stance, analysts declare.
“I believe it’s just the final sign that the EU is throwing in its lot with the US on China,” stated Varg Folkman, an analyst at the European Policy Centre, a Brussels-based believe-tank. “I definitely believe it’s going to be viewed like that by the Chinese – they would be fools not to do it.”
Beijing, which has condemned previous US trade deals with the UK and Vietnam, reacted slightly more mildly to the EU–US agreement.
“We firmly oppose any party’s relocate to strike a deal at the cost of China’s interests,” stated China’s foreign affairs spokesperson Guo Jiakun last Monday – one day after the EU-US deal was announced.
Few details
Despite broad commitments, Brussels has offered little clarity on how the EU and the US plan to jointly address Beijing’s “overcapacities” or its grip over the world’s supply of critical minerals, essential for cars, smartphones, and other advanced technologies.
“It seems to me that not all of the information about the EU-US deal has been released – especially when it comes to the economic security part,” stated Alicia García Herrero, senior fellow at the Bruegel believe tank. “We’re missing a large part of that picture.”
The senior Commission official stated that a forthcoming EU-US joint statement on the deal – which is “90-95% ready” – will not offer specific details on economic security cooperation, but will instead contain “fairly general language” that Brussels will “develop [as] we go.”
García Herrero stated the vagueness is likely intentional, as China is not only the world’s second-largest economy but also the EU’s second-largest trading partner.
Japan, which struck a similar deal with Washington last month, has also refrained from elaborating on how it plans to cooperate with the US over its China policy, she noted.
“The Japanese didn’t put on paper their disagreements and what they’re going to do, becautilize it’s too risky,” García Herrero stated. “For Europe, it would also raise questions: ‘Are we encircling China?’ So there’s no point.”
Tit for (trade) spat
The deal also comes amid worsening EU-China ties, long strained by human rights concerns and Taiwan’s status. Beijing’s introduction of sweeping export controls on critical minerals earlier this year – which came in response to Trump’s imposition of a 145% blanket levy on Beijing – has rattled EU policybuildrs and forced temporary production shutdowns in Europe.
China’s growing ties with Russia have exacerbated tensions as European leaders scramble to sustain support for Ukraine amid mounting Russian attacks and fading US backing.
Yet Trump, who has praised Russian President Vladimir Putin and promised to conclude the Ukraine war “within 24 hours,” has recently shifted tone – threatening “secondary tariffs” on India and China for purchasing Russian oil.
Some analysts suggest Brussels may have won that shift as a concession during trade nereceivediations.
“On the issue of Europe’s economic security, the US has, in my view, been willing to offer something: it is putting pressure on India and China to cut ties with Russia,” stated García Herrero.
“The US wants to encircle China and cut it out of supply chains. Europe is declareing, ‘Fine, I’m with you’ – but they want the US to obtain tougher on Russia.”
‘A flimsy foundation’
Still, others question whether the EU-US deal offers much foundation for economic or political cooperation.
“Given the overall shakiness of the deal,” the commitment to boost economic security cooperation “sees like a flimsy foundation for serious transatlantic cooperation,” stated Nils Redeker, deputy director at the Jacques Delors Centre.
Redeker argued the EU’s China policy has been weakened by “internal divisions” that also severely hindered the bloc’s nereceivediations with Washington.
He pointed to the sharp divisions among EU capitals over the Commission’s decision last year to impose tariffs on Chinese electric vehicles. The levies were strongly backed by France but fiercely opposed by Germany, whose export-oriented car sector is heavily tied to the Chinese market.
“One key lesson from the deal with the US is that the EU still hasn’t found its strategic footing in a rapidly modifying trade landscape,” Redeker stated. “And for now, the same goes for its approach to China.”
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