Europe faces growing pressure from the US and China as it struggles to stay competitive.
For decades, Europe relied on the United States for security and on China for cheap goods.
Now, it is lagging behind both.
Tensions with its ally, Washington, are rising over tariffs, defence spending and Greenland, putting the transatlantic relationship under strain.
Beijing dominates key supply chains and raw materials Europe still depends on.
When Presidents Donald Trump and Xi Jinping met last week, Europe was not in the room, but their decisions still land on the continent’s doorstep.
Europe has leverage of its own, including a single market of 450 million consumers.
But closing its competitiveness gap requires deep reform and massive investment.
Published On 1 Oct 2026
