The EU and U.S. recently announced a deal providing America favorable treatment to European critical materials. The agreement will deepen cooperation and decrease their dependency on China, but potential consequences remain uncertain. In the future, the EU should adopt a more ambitious stance to strengthen their position as a self-reliant and influential global geopolitical force, as they navigate the delicate balance between Beijing and Washington.

The decline in trade cannot continue, as both countries need each other. It can be expected that they will patch up their disputes and work together, turning the numbers around to bring more tangible benefits to their people.

Consumption is the key. To restore and expand it, China needs to roll out sound, targeted policies. Obstacles that currently hinder consumption growth need to be removed, especially in the real estate and automobile sectors.

The Russia-Ukraine war has shaken Europe’s energy security, triggering major adjustments in supply chains, consumption and renewable energy development. The conflict and its spillover effects suggest that a new economic cold war may already be underway.

The end of ‘zero-COVID’ policies may have produced some private sector optimism about the country’s growth trajectory but certain indicators reveal a weakness in the system. Policymakers and investors remain skittish on China, increasingly looking to Southeast Asia as a haven of financial promise and stability.

Industrial and supply chains have become the main theater of competition between China and the United States. America’s technology war will be deliberate, intense and long-term. For this reason, China must be strategically prepared for a protracted fight.

The year 2023 represents a turning point. If economic realities guide global prospects, it will be a positive turnaround. If geopolitics will continue to penalize economic prospects, a negative inflection point is more likely.

Next winter, Europe is likely to face a challenging time in the energy market, in part due to China’s increased energy demand post-COVID lockdowns. As European countries reduce their dependence on Russian pipeline gas and imports of liquified natural gas, they will face challenges and potential shortages that might impact energy supply security and pricing.

The recent sanctions from the U.S. against Chinese satellite manufacturer Spacety China in response to the company’s alleged connection with Russia’s Wagner group of mercenaries have significant geopolitical implications. These include increased tensions as a result of U.S. efforts to counter Russia’s aggression in Ukraine, and consequently, an aggravated relationship between Russia and China.

America’s professed commitment to the WTO is suspect: What it really wants is to reshape the organization in its own image. By rejecting the WTO ruling against it, the U.S. is putting the teetering trade body at risk.