GOOD MORNING FROM LONDON 8 JUNE 2021
Biden will attend G7 in the UK on 11 June + then to Brussels next week to take part in NATO + EU/US summits. The EU is more hawkish on China but still has a different economic/strategic priority from the US.
G7 will discuss rival plans to counter China’s Belt+Road Initiative but, as FT reports, Europe objects to US Cold War rhetoric. Tensions between the two giants are reflected in differences on semi-conductor issues – a key business indicator – as the Netherlands, pressured by the US, restricts Dutch companies from exporting ASML equipment to China.
Germany counts China as its biggest trading partner + Merkel has resisted US efforts to push Germany into a more confrontational mode. There are two big issues in the mix. First, EU business (especially German Business) wants more of China, not less. Diplomats + Big Business always have different agendas but Diplomats cannot fundamentally confront their own Business Leaders. Second, is the US/EU a White Man’s Club? Japan and others, for example, have not put sanctions on China over Xinjiang issues.
How far can the EU go in working more closely with the US over China?