In recent years, European countries, led by Germany and France, have been engaging in trade with communist China, putting their short-term economic needs ahead of long-term economic strength and international peace and security. However, the United States has the opportunity to help end this troubling trend.
European companies justify their business dealings with China by citing various excuses. They claim that the war with Russia, economic struggles in Europe, and even the possibility of a Trump 2.0 presidency necessitate engagement with China. These justifications are self-serving and fail to consider the risks associated with trade with China.
German Chancellor Olaf Scholz recently flew to China with three cabinet ministers and CEOs of major companies. During his visit, Scholz attempted to promote Germany’s business interests in China, even going as far as rhetorically undercutting European Union tariffs on China. However, these tariffs are essential for derisking supply chains and diversifying Europe’s industrial base, a crucial aspect of its economic and military strength.
Furthermore, China has a history of using its economic power for political purposes. It has leveraged control over rare earth elements and other resources to advance its authoritarian agenda. By investing heavily in China, German companies like Mercedes-Benz, BMW, and BASF become vulnerable to Beijing’s influence. This not only compromises Germany’s autonomy but also allows China to gain political leverage in Berlin.
China is also leveraging its car market to increase its political influence in Europe. Luxury car brands such as BMW, Mercedes-Benz, Lexus, Porsche, and Audi are among the top imports in China. To access this lucrative market, these companies must manufacture their vehicles in China. Beijing is using this requirement as a means to establish its car companies in Europe, which would open up Europe’s car market to Chinese influence and provide easier access to European technology for Chinese engineers.
While Germany is deeply involved in trade with China, France is not far behind. French President Emmanuel Macron is set to meet with Chinese President Xi Jinping in Paris, indicating France’s willingness to accommodate the Chinese Communist Party (CCP). The French ambassador to China even expressed support for an increase in student visas, highlighting France’s bending to CCP demands. Chinese students in France not only provide financial support to cash-strapped universities but also contribute to technology leakage back to China.
Beijing is actively trying to split the European Union from its ally, the United States. It has allowed visa-free travel for Europe’s largest economies and lifted bans on certain European agricultural products as a means of rewarding countries that do not challenge its agenda. By providing benefits to individual European countries rather than the EU as a whole, China aims to undermine European unity and dilute NATO’s power.
This division among European countries weakens their ability to coordinate sanctions against the CCP. A united front between the United States and Europe, imposing coordinated sanctions, could force China to reconsider its human rights abuses and international behavior. Such sanctions would significantly impact China’s international trade and access to technology, thereby reducing its defense budget and military capabilities.
The ongoing conflict between Russia and Ukraine has also served as an excuse for increased EU-China trade. However, this trade indirectly supports the CCP and its partner, Russia, while enabling China to back Iran diplomatically, invade Taiwan, and outcompete Western allies industrially.
The United States must take action to ensure that allies and companies around the world do not strengthen adversaries like China. Appeasement only strengthens our adversaries, but concrete steps can be taken to strengthen the unity of democracies. Implementing secondary sanctions against companies in any country that strengthen adversaries is one such step. This includes imposing sanctions on companies in Germany and France that justify their trade with China with flimsy excuses.
It is essential to prioritize long-term economic strength, international peace, and security over short-term economic gains. By ending Europe’s blood trade with communist China, the United States can contribute to a more stable global order that values human rights and democracy over authoritarianism and aggression.
