The EU-China Comprehensive Investment Agreement (CAI) might look like a free lunch for European companies interested in operating in China but the push for bifurcation of operations both from U.S. and Chinese side could bring unintended negative consequences from such deal.

European foreign policy often mirrors Washington’s global ambitions. As China’s economic influence strengthens, the Biden administration must consider a new foreign policy to unite the United States and its European partners.

European foreign policy often mirrors Washington’s global ambitions. As China’s economic influence strengthens, the Biden administration must consider a new foreign policy to unite the United States and its European partners.

The new U.S. president is relying is his political memory as he approaches relations with Europe. But the world no longer matches the memories. He will face significant new hurdles. Donald Trump made structural changes that will not be easy to undo.

China and the EU are staunch supporters of multilateralism, and the recent BIT agreement, underpinned by institutionalized rules for win-win cooperation, will significantly shore up confidence in cooperation in global governance.

The treaty is part of a strategic choice made by China, whose interests align with those of the European Union. For the EU, the BIT is a well-thought-out strategic choice based on the world’s post-pandemic economic landscape.

China’s history with Europe stretches back centuries to the age of the Silk Road. Today’s landscape sees China as a global superpower often at odds with Europe’s traditional ally, the U.S. With their own agendas to carry out, each EU-member state sees opportunity, threat, and everything in between when it comes to China.

While the European Union and United States share many intertwined interests, Trump has undermined the relationship. So, it will be difficult for the transatlantic alliance to go back to what it was, even with Biden as U.S. president.

There is good reason to believe that patching up relations in an estranged Europe will be a top priority for the incoming administration of Joe Biden. China needs to adapt intelligently, as the United States is likely to keep the pressure on.

Who will win the ‘hearts and minds’ of Central, Eastern, and Southeastern Europeans with well-spent investment – Beijing with the Belt and Road, or Washington with the Three Seas Initiative?