Washington, D.C. – The much-anticipated US-EU summit, featuring prominent leaders, is scheduled for Friday at the White House. However, as the two major powers try to align their strategic goals, analysts are cautious about the potential for reaching a consensus, particularly regarding their policies toward China.
The summit brings together key figures from both sides of the Atlantic, including US President Joe Biden, European Commission President Ursula von der Leyen, and European Council President Charles Michel. While it is seen as a significant event for transatlantic relations, the divisions in their approaches to China, coupled with varying voices within the European Union, have raised doubts about the effectiveness of the joint statement expected to be issued during the summit.
Transatlantic Disagreements on China
As the South China Morning Post reported, negotiations leading up to the summit have been characterized by intense discussions, particularly around China-related issues. These disputes have thrown the preparatory talks into overdrive and underscore the challenges faced by the United States and the European Union in coordinating their China policies.
The Center for European Policy Analysis (CEPA), a Washington-based public policy institution, published an article titled “‘Steely Stuff’ Dominates Upcoming EU-US Summit” on Wednesday. In it, they predicted that “A transatlantic trade truce on steel and aluminum could represent a major advance in combating climate change and China. Or it could underline transatlantic differences. The jury remains out.”
The Struggle Over Trade Deals
One key area of contention at the summit is trade, with doubts surfacing regarding an expected deal on steel and aluminum. The United States is pushing the European Union to address overcapacity in the global steel and aluminum industries, potentially leading to tariffs of 25 percent on steel products and 10 percent on aluminum, primarily from China, the world’s largest exporter of these products.
In response, the EU is seeking the permanent and full revocation of all tariffs imposed during the Trump era on its products. However, the prospect of reaching an agreement in this area has become increasingly uncertain, as reported by the South China Morning Post.
According to Lü Xiang, a research fellow at the Chinese Academy of Social Sciences, the United States is seeking to preserve its hegemony by compelling Europe to sacrifice its interests, particularly in trade and technology. Lü believes that the United States is demanding Europe’s strict compliance with American standards in these domains, potentially straining their alliance.
The Battle for Autonomy
Li Haidong, a professor at the China Foreign Affairs University, explained that the fundamental reason behind the diverging interests of the United States and the European Union is the former’s desire to strategically align the EU with its policies, while the latter aims to assert its autonomy, both economically and strategically.
“Although the US’ efforts to influence Europe strategically will not cease, Europe’s efforts to maintain its own interests and dignity and achieve autonomy will also not stop. Therefore, we cannot ignore the differences between the two sides, which are always present and quite profound,” Li noted.
In light of these differing interests related to China, analysts are skeptical about the possibility of a substantive agreement being reached during the summit. Despite significant pressure from the United States, European leaders are also wary of the uncertainties surrounding the upcoming US elections. They may choose to observe further developments before committing to any significant agreements.
Europe’s Balancing Act with China
The European Union places great importance on its trade and economic relationship with China. This makes it challenging for Europe to align completely with the United States, which seeks to leverage trade issues for geopolitical purposes.
While there may be some coordination on China-related trade issues at the summit, it is unlikely that the United States and Europe will completely unite for geopolitical competition with China using trade as a tool. Even the United States itself is not willing to completely decouple from China, and Europe is even less likely to do so.
According to Li, “Europe will naturally have reservations when the US wants to unite it against China, especially when there are no constructive outcomes on the Ukraine crisis and the escalating Middle East issues.”
In conclusion, as the US-EU summit approaches, it is clear that divisions over China policies loom large, overshadowing the prospects of significant agreements. While the transatlantic allies may find common ground on certain issues, the complexities of their relationship with China and the need to balance their individual interests are likely to make any substantial deals elusive. The world will be closely watching as leaders from both sides of the Atlantic attempt to navigate this delicate diplomatic terrain.
Read More: