2. The EU as Pivotal Player in the Growing China–U.S. Conflict

In 2017–2020, the EU faced three great geopolitical challenges. Under Donald Trump, the U.S. turned against the norms, rules, and institutions of the rules-based international order that formed the bedrock of transatlantic relations for decades. At the same time, China turned a more authoritarian turn at home and a more assertive approach. And the U.S.–China relations nose-dived into a general trade, technology, and security contest in the wake of strong U.S. moves. The Biden administration has generally committed to continuing the confrontational approach to China, albeit in altered form. This chapter focuses on the impact of these trends on the EU strategic decisions toward China and EU–China relations. I argue that the EU has developed a triple response to this challenge: multilateral reinforcement, Cold War avoidance, and complex balancing. The EU is seeking a middle road, increasingly cooperating with China on a range of global topics, while seeking U.S. support to constrain threatening dimensions of China’s power or economic policy. This approach has to overcome a growing clash between EU economic interests and EU values and security position and has not reached a stable equilibrium yet.