25 May 2021

Brussels and Beijing in a Standoff

https://www.aljazeera.com/economy/2021/5/20/eu-warns-china-no-business-investment-deal-if-sanctions-remain

Brussels and Beijing are caught in something of a standoff. Both political entities have thrown down the gauntlet and now neither knows how to get out of the situation. And you can be sure that if a way can be found, the United States will pour fuel on the fire.

Who needs the other more? Who can outlast the other?

In other words, it's a test.


In the 1990s the US would have wanted the rival EU to fall flat on its face but not today. Today it wants the EU to stand strong and resist Beijing at all costs even to the point of breaking down the EU's trade with China.

The US doesn't want a direct conflict with China – at least not the China of the present. First it hopes to reduce China on a hundred fronts, a strategy that hasn't had much success thus far. The US is looking for allies and an EU in the wake of a collapsed China deal might look once more to the US. The US will appear generous and fair but any deal comes with concessions – a point the Europeans will remember all too well with the Marshall Plan and its successors. The reality was the nations of Western Europe all but lost their autonomy during the Cold War and even thirty years after its end, they are still struggling to break free of Washington's control.

Most likely a compromise will be found in this Brussels-Beijing stare down, but someone is going to blink first and lose face as a result. The US would love to see Xi toppled but I have a feeling the shakeup will most likely be in Brussels itself.

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