Relations with China

Foreign Policy warns that weakened institutions and concentrated power under Trump and Xi have made US-China tensions more unpredictable and harder to manage. Foreign Affairs argues that Europe must defend its industrial base from a severe “China Shock 2.0.” The Financial Times uses Citribel’s struggle to show how subsidized Chinese competition and European cost pressures threaten the continent’s bulk chemical industry. The Financial Times highlights growing Franco-German alignment on emergency measures to protect European manufacturing from surging Chinese imports. Bloomberg contends that Europe must preserve rules-based trade while confronting China’s subsidized export model more forcefully and collectively. Bloomberg argues that Europe should reject US-style unilateral tariffs and instead use coordinated measures against China’s export surge. Foreign Affairs warns that China’s pursuit of industrial dominance is undermining the open global order that enabled its rise and may ultimately prove self-defeating.

Mentioned publications

US-China relations are more volatile than ever – Andrew Scobell and Andrea Ghiselli, Foreign Policy, July 17, 2026
Trump and Xi may seek strategic stability, but their concentration of power and weakening of key institutions have eroded the clarity, predictability, and diplomatic guardrails needed to manage US-China tensions. Without functioning institutions and reliable communication channels, disputes over Taiwan, trade, and technology could spiral into diplomatic chaos.
The coming clash between China and Europe – why a trade war can’t be avoided – Thorsten Benner, Foreign Affairs, July 16, 2026
Benner argues that Europe faces a severe “China Shock 2.0” that could devastate advanced industries, eliminate jobs, and deepen strategic dependencies. To preserve its industrial base, the EU must protect against unfair Chinese competition, maintain unity, coordinate with like-minded partners, and prepare for retaliation.
HF sponsored access The factory on the front line of Europe’s economic battle with China – Peter Foster and Joe Leahy, Financial Times, July 21, 2026
Europe’s bulk chemical industry faces an existential threat from subsidized Chinese competition, rising energy costs, weak demand, and persistent overcapacity that has driven prices below sustainable levels. Citribel’s struggle shows how Europe’s failure to counter unfair trade practices risks further plant closures, deeper dependence on China, and the loss of its basic industrial base.
HF sponsored access Paris and Berlin vow to align on tougher trade measures against China – Anne-Sylvaine Chassany, Financial Times, July 17, 2026
France and Germany have forged an unprecedented, united front on China trade policy, calling for “emergency measures” to protect European industry from surging Chinese imports and warning that the EU’s widening trade deficit and an undervalued renminbi pose an existential threat to manufacturing.
Europe has to take on China to save free trade – Shannon O’Neil, Bloomberg Op-ed, July 17, 2026
The US and the EU are competing to define the future global trading system: Europe seeks to preserve the rules-based order, while the US uses bilateral agreements to shift commercial balances and constrain China. Each has lessons for the other, as the US could benefit from Europe’s stability and cooperation, while the EU must do more to confront China’s subsidized export model.
Tariffs aren’t the answer to Europe’s new China shock – The Editorial Board, Bloomberg Op-ed, July 17, 2026
While Europe must address the growing threat posed by China’s state-backed export surge, abandoning the rules-based trading system in favor of US-style unilateral tariffs would be counterproductive. Coordinated action with like-minded partners would better protect European industry and increase the chances of changing China’s behavior.
China is sabotaging the world that enables its rise – Beijing's risky bet against the West – Enrico Fardella and Sergey Radchenko, Foreign Affairs, July 15, 2026
China’s rise has depended on the openness of the US-led order, but its pursuit of industrial dominance is fueling protectionism, de-risking, and fragmentation that could undermine the foundations of its own success. Unless Beijing rebalances toward household consumption and away from export-driven overproduction, its bid for a post-Western order may prove self-defeating.