Where is Europe’s place in the age of geoeconomics?

The world economy has become the battleground for rivalry between Washington and Beijing. But what geoeconomic game is Europe playing?

Roderick Kefferpütz
The Shadow

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“It’s the economy, stupid!” This infamous phrase also holds true for international relations. Over the years, the spheres of security and economy have become increasingly linked. It is the world economy, which has become the central battleground for hegemonic rivalry between Washington and Beijing. Several factors have led to this development, first and foremost the economic rise of China.

The People’s Republic has become an economic magnet slowly displacing the United States. While in the 1980s China’s share of world trade amounted to a meagre one per cent, that figure has risen to about 13 per cent. For more than 130 countries in the world it is the most important trading partner. Numerous trade deals and its Belt and Road Initiative (BRI) are cementing this situation, contributing to the establishment of a Chinese sphere of economic influence. The COVID-19 pandemic is also likely to accelerate this trend as China’s economy is boasting positive growth rates, while Western nations are stuck in a lockdown-induced economic recession. Beijing knows that it is currently unlikely to displace the US…

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Roderick Kefferpütz
The Shadow

Advisor and Writer on the changing geopolitical and economic world order. (www.roderickkefferpuetz.com )