Alignment or misalignment? US and EU high-tech trade and sanctions policies toward China

Antonio Calcara and Jeffrey Schott
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Antonio Calcara: Centre for Security, Diplomacy and Strategy-VUB

No PB25-3, Policy Briefs from Peterson Institute for International Economics

Abstract: This Policy Brief focuses on the alignment or misalignment of the European Union and the United States on high-technology trade and sanctions vis-a-vis China. The Trump administration is likely to continue the aggressive US stance toward China in the technological realm, putting increasing pressure on its European allies to align with US policy. The Europeans, for their part, are in a difficult position: On the one hand, they are under pressure from the US government; on the other hand, the more Washington restricts Chinese trade, the more Chinese exporters will look to the European market to sell their manufactured goods. Increased competition from Chinese imports in Europe, especially in the automotive sector, could in turn trigger a political backlash that weakens support for transatlantic coordination on China. This Policy Brief has been copublished with the Centre for Security, Diplomacy and Strategy-VUB.

Date: 2025-04
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