The notion of decoupling has lost steam across Europe, though some countries are still looking to reduce their dependence on China. How Europe chooses to balance cooperation with competition will be the key as the two sides cooperate in areas of shared interest.

As one of America’s key European allies, Germany is exploring its own version of strategic autonomy — a low-profile and pragmatic version — not only for itself but also on behalf of Europe. German Chancellor Olaf Scholz’s recent trip to China was a notable touchstone.

Scholz’s visit helps set the narrative straight. China and Europe should set their own agenda, without the heavy hand of a third party. They should be guided by their hopes for the future, not their fears.

There is uncertainty in the relationship between the EU, the U.S. and China due to the EU’s increased dependence on Russian Oil and Chinese goods and markets, amidst the Ukraine war and increased tensions between the U.S., China and Russia.

Europe’s interests require that it strongly back the global trading system and establish multilateral independence toward other countries, especially China. Strategically autonomy, however, means the EU must break away from its reliance on Washington.

China stands at a crossroads and will be key in determining whether two camps will take shape. President Xi Jinping’s global development and security initiatives inject confidence into a world industrial scheme that has lost momentum and an international order that has lost stability.

Europe has taken a strategic stance when it comes to its relationship with the U.S. and with China. While the U.S. has strengthened ties with its European allies to contain China, Europe also supports China’s monetary ambitions regarding the RMB.

Differences over the rules for world affairs will not be resolved easily and won’t be resolved in favor the U.S. Countries are interdependent, and a divided world serves no one’s best interests.

Economic globalization — with more participants — is in Europe’s interest. Following the lead of the United States and kicking Russia and its allies out of the international system will only cause global fragmentation.

The EU-China summit seemingly left both sides with a bad taste in their mouths, but it could be the start of a new relationship dynamic between the two powers.