Decoding China: Beijing courts Europe amid US dysfunction in World Economy News 07/05/2026 These days, Europe is losing its significance in global politics and the economy,” a law student shouted from the audience during a recent political TV talk show broadcast on Shanghai Media Group (SMG), a Chinese state media outlet. “Are the European elite and the public aware of this?” The question reflects Chinese public perception of Europe’s stagnant economy, dependent foreign policy, and lack of defense capabilities. European powers are seen as still kowtowing to Washington and, despite intensive efforts, they appear incapable of stopping the Ukraine war, which is being waged on their own doorstep by Russia. Additionally, US President Donald Trump has thrown the transatlantic alliance into dissaray since his return to office in January 2025, threatening to capture Greenland and calling the integrity of the NATO alliance into question after the Europeans backed off from joining Trump’s war on Iran. China regards the split between as an opportunity. Beijing envisions the future world as multipolar, and this shapes its strategy towards its rival superpower. China intends to work, not alone, but alongside Russia and other nations not aligned to the US. But China still believes Europe could become an independent pole in a new order. The logic behind this is quite simple. With the United Kingdom and France, Europe holds two veto votes in the UN Security Council. The EU single market is highly attractive to China’s export-oriented economy. This has become increasingly apparent in the wake of the trade war initiated by President Trump. And the leadership in Beijing believe that companies in Europe and China can complement each other very well. Room for China-Europe partnership Europe still has a lot to offer in terms of technology. China, on the other hand, has the production capacity to manufacture everything at competitive prices. Economic ties between the two are strong. Beiji