Navigating the Transatlantic-China Policy Crisis (dgap.org)

• US-China policy is increasingly viewed as incoherent, undermining traditional alliance credibility.
• Europe faces severe de-industrialization risks due to Chinese manufacturing overcapacity.
• Joint efforts in critical raw material mining are essential to mitigate economic coercion.

"A DGAP report examines the strained relations between the US, Europe, and East Asian partners amidst shifting China policies. As the Trump administration creates geopolitical volatility and economic friction, traditional partners are questioning the stability of the 'like-minded' alliance framework. The report highlights China's weaponization of critical supply chains, such as rare earths, as a primary threat. It identifies a growing consensus on the need for independent European and East Asian collaboration in critical raw material mining and industrial strategy to counter both Chinese economic coercion and the unpredictable nature of US foreign policy."