The United States and the European Union—as the only two free and open economies with the heft to stand up to Chinese mercantilism—are each other’s indispensable partners in prevailing over China. The EU’s share of global GDP is a touch greater than that of China. The transatlantic integrated investment landscape boasts a total value in excess of $5 trillion—with more than $2.7 trillion in U.S. investments in Europe and more than $2.4 trillion in European investments in the U.S. The transatlantic economies account for the largest and strongest economic grouping in the world and need to harness their collective advantage against shared global adversaries who are determinedly trying to divide the two. 

Undeterred by the diversionary designs of their shared adversaries, the United States and the EU should make common cause by advancing their shared interests. The recent vote by EU member states on levying tariffs against cheap Chinese electric vehicles flooding European markets underscores both the recognition of the Chinese threat and the complexity of uniting diverse European nations to take necessary action. The United States should recognize this transatlantic convergence and prioritize collective, coordinated efforts that nurture this growing but fragile alignment.

China is following a playbook similar to Russia’s, but with considerably more economic tools at its disposal. Beijing aims to sow division not only among the bloc’s member states but also between the United States and Europe. It would be highly imprudent to ignore or assist adversaries’ divisive designs. To the contrary, both American and European leaders need to demonstrate exceptional consideration and patience toward each other’s domestic complexities to ensure that transatlantic solidarity against shared adversaries, China and Russia, is reaffirmed and strengthened.

Collective action against China in Europe has proven to be a pronounced version of “herding cats,” as evidenced by the recent vote on potential tariffs on Chinese EVs. Although the vote was carried in the EU Commission, the majority of EU member states either abstained (twelve out of twenty-seven) or, in the case of five nations led by Germany and Hungary, opposed the measure. Only ten countries—including the Baltics, Poland, Bulgaria, Denmark, the Netherlands, Italy, France, and Ireland—voted in favor. NATO stalwarts such as Romania and Czechia, along with new NATO members Finland and Sweden, abstained, as did Spain, Portugal, Greece, and several smaller nations like Croatia, Cyprus, Austria, Belgium, and Luxembourg. This voting pattern provides four key insights for American leaders, particularly those focused on China.

First and foremost, only the European Union—not any individual European nation—possesses the economic strength to stand up to China. EU Commission President Ursula von der Leyen is the singular European leader who has visited Beijing and delivered a strong message: “The Chinese Communist Party’s clear goal is a systemic change of the international order, with China at its center.” In contrast, President Emmanuel Macron has sent mixed messages on Taiwan in an effort to distance France from the United States. German chancellor Olaf Scholz appears more concerned with preserving the Chinese market for German cars. Hungary, for its part, receives more Chinese investment than Germany, France, and the UK combined, with plans to produce Chinese EVs domestically to circumvent EU tariffs. Several European political leaders and parties, especially those aligned with American conservatives on cultural issues, often welcome Russian and Chinese overtures that are antithetical to both American and European national interests.

Second, von der Leyen, supported by the core group of nations that voted yes on Chinese tariffs—with the notable exceptions of France and Ireland—views China and Russia as integrated threats. Unlike others, this group does not solicit American guarantees for NATO while lamenting being caught in a U.S.-China contest. China’s challenge to American interests extends far beyond the Indo-Pacific. China’s material support for Russia is crucial to sustaining its barbaric war against Ukraine. North Korean troops are fighting on Russia’s behalf along the Ukraine frontlines. Realist leaders in both America and Europe grasp the global challenge posed by China and understand that collective action is required to counter it. In this effort, President von der Leyen leads Europe above any individual national leader.

Third, the locus of European China policy has shifted from Berlin to Brussels. Berlin was unable to derail European action against Chinese EVs, as it had done with Chinese solar panels about a decade ago. The Commission under von der Leyen’s leadership is the pacesetter for European policy on China. She expended extraordinary political capital to stare down her native country and stay the course. A U.S.-EU partnership with China will add wind under her wings to hold member nations on course. And it will afford the U.S. a formidable economic partner to curtail Chinese predatory behavior. 

Fourth, the United States and Europe must demonstrate at least as much (if not more) common cause and solidarity as their adversaries. China and Russia, in their “partnership with no limits,” have overcome far more significant structural differences to unite against the transatlantic alliance. This unity is even more remarkable with the inclusion of Iran and North Korea. A transatlantic response driven by shared interests, purpose, and urgency is a necessity, not a luxury. A reinvigorated NATO and a strong U.S.-EU alliance are indispensable defense and economic pillars in the transatlantic response to this Chinese-led “Axis of Four.”

The incoming U.S. and EU administrations must prioritize finding common ground in addressing Chinese mercantilism. A transatlantic tariff dispute would rupture the fragile convergence on the China threat, leading to European member states pressuring the Commission to push retaliatory measures on America. At the same time, the larger struggle with China remains unaddressed. This would embolden the China-Russia Nexus by weakening allied resilience and resolve.

The times demand that America and Europe put their strategic interests over short-term tactical differences. They should not abandon legitimate bilateral economic competition but rather contextualize it within the broader collective economic interest of combating Chinese mercantilism. A two-pronged approach—transatlantic sectoral agreements and coordinated, narrowly tailored industrial policies—will be essential in addressing China’s market-distorting behavior. Close transatlantic coordination in critical sectors such as semiconductors, advanced technologies, defense production, pharmaceuticals, critical minerals, the global communication and data economy, and more holds the promise of high returns.

The U.S. and European alignment in fostering economic connectivity across the Eastern Mediterranean, Middle East, and Indian Ocean will advance shared interests in transforming transcontinental trade and commerce as a robust, multilateral rebuttal to China’s Belt and Road mercantilism. Efforts like the Three Seas (Adriatic-Baltic-Black) Initiative and the India-Middle East-Europe Economic Corridor (IMEC) offer a generational opportunity to reset transcontinental economic connectivity with transformative inroads for Africa and Central Asia. In so doing, it addresses the economic aspirations of the Global South, which both America and Europe have been slow to address.

The formidable commitment and coordination demonstrated by the China-Russia nexus calls for America and Europe to put their strategic interests above their short-term tactical divergences and political expediencies. Ursula von der Leyen regularly reminds Europeans that, despite their differences with the United States, they sit on the same side of the table. True to form, she has been the most resolutely aligned with the U.S. positions on China, Ukraine, and Israel. Transatlantic bonds run deep. They were forged through shared blood and treasure over a century or more. A fellowship oft momentarily overlooked should never be forgotten or abandoned. President-elect Trump, with a predisposition to realism in world affairs, will find in President von der Leyen and High Representative Kaja Kallas partners with proven resolve and reciprocal commitments to bolstering the transatlantic alliance in prevailing against the China-Russia Nexus. 

Kaush Arha is the President of the Free & Open Indo-Pacific Forum and a non-resident senior fellow at the Atlantic Council and the Krach Institute for Tech Diplomacy at Purdue.

Jorn Fleck is the Senior Director of the Atlantic Council’s Europe Centre.

Image: Alexandros Michailidis / Shutterstock.com.