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As monetary tensions between the United States and China intensify, the space for ambiguity narrows. If Washington withdraws from its role as global absorber while Beijing resists deep rebalancing, adjustment will be forced somewhere. Without coordination, it will be forced onto Europe.

A less unified Europe may struggle to sustain a common position on China, potentially creating greater room for China to divide and conquer. However, some Chinese scholars caution that a Europe divided by the far right is not necessarily more China-friendly as populist parties’ diverse and often contradictory approaches to…