Sleeping with the Dragon: Europe's Perilous Path Toward Chinese Dominance

The modern geopolitical landscape is increasingly tense, yet Europe appears strangely indifferent to the mounting existential challenge posed by China. Despite China's aggressive pursuit of global dominance, from its rapid military expansion to its economic strategies that entangle developing nations in debt traps, Europe remains passive, seemingly unwilling or unable to confront these threats head-on. While the United States, under Donald Trump, acknowledged and directly confronted Beijing's multifaceted challenges through tariffs, trade restrictions, and strategic alliances, Europe continues to adopt a complacent stance. This indifference is particularly perplexing given China's growing influence over vital supply chains, its support for authoritarian regimes, and its manipulation of international norms to serve its agenda. By failing to respond decisively, Europe risks becoming a pawn in Beijing's bid for global supremacy, sacrificing its strategic autonomy and the long-term security of its citizens.


China’s Military Build-Up: A Growing Threat
China’s military build-up is staggering in both scale and ambition, representing one of the most formidable challenges to global security in the 21st century. Over the past decade, Beijing has dramatically increased its defence spending, focusing on modernising its naval fleet, enhancing missile systems, and developing sophisticated cyber warfare capabilities. The People’s Liberation Army Navy (PLAN) now boasts a fleet that rivals, and in some cases surpasses, those of traditional Western powers, including advanced aircraft carriers and nuclear submarines. China's relentless investment in hypersonic missile technology and artificial intelligence further underscores its strategic intent to dominate future warfare landscapes.


Nowhere is China’s growing assertiveness more evident than in the South China Sea. This once-contested international waterway has effectively been transformed into a militarised zone under Beijing’s control, complete with artificial islands equipped with airstrips, missile systems, and radar installations. By asserting control over this vital maritime region, China poses a direct threat to global trade routes that carry a significant portion of the world's commerce, including essential goods destined for European markets.


Despite these glaring developments, Europe remains curiously detached from the long-term strategic implications of China’s military ambitions. European nations, heavily reliant on these same trade networks, have yet to formulate a cohesive response to Beijing’s militarisation of critical international waters. This inertia not only undermines Europe's economic security but also emboldens China to continue its aggressive expansion unchecked. The question remains: how long can Europe afford to ignore the growing military might of a nation determined to reshape the global order in its favour?


Economic Expansion and Debt Traps
Beyond its expanding military ambitions, China’s economic strategies are equally concerning, as they highlight a pattern of assertive and often coercive geopolitical manoeuvring. One of the most significant tools in this strategy is China’s Belt and Road Initiative (BRI), a far-reaching infrastructure development and investment programme that spans across multiple continents, from Africa and Latin America to parts of Asia.

Through this initiative, Beijing offers loans to developing nations, many of which come with terms that are, in effect, designed to create long-term financial dependence and vulnerability. These loans are often structured in a way that makes repayment exceedingly difficult, if not impossible, for many of these nations. When these countries inevitably default on their debts, China capitalises on their inability to fulfil financial obligations by seizing strategic assets, including critical infrastructure such as ports, railways, and energy projects, along with valuable natural resources such as mineral deposits.

This process has effectively led to numerous nations surrendering control of key assets to China, often without sufficient resistance or oversight from international bodies.
In regions like Africa, Latin America, and parts of Asia, this growing pattern of debt-trap diplomacy has already begun to erode national sovereignty. Several countries in these regions now find themselves at the mercy of Beijing's economic influence, their governments forced to make decisions that serve Chinese interests rather than those of their own people.

These same countries, which possess some of the world’s most vital minerals and resources, such as cobalt, lithium, and rare earth elements, are increasingly becoming dependent on China for access to their own natural wealth. This access is pivotal not only for China’s domestic technological and industrial ambitions but also for its growing control over global supply chains, particularly in sectors such as renewable energy, electronics, and telecommunications. The result is that China now holds unprecedented leverage over industries worldwide, as it monopolises the supply of these critical resources, potentially manipulating prices, dictating terms of trade, and steering global technological and energy markets in ways that further its own strategic aims. In this way, China is not just shaping the economic landscape; it is systematically altering the global balance of power in its favour, consolidating both economic and political influence across the developing world.


Support for Rogue States and Exploitation of Vulnerabilities
In tandem with its aggressive economic strategies, China has shown a consistent and steadfast alignment with rogue states such as Russia, Iran, and North Korea, underscoring its broader geopolitical ambitions. Beijing’s unwavering support for these nations not only challenges Western dominance but also destabilises international efforts to enforce global norms and principles. In international forums like the United Nations, China regularly shields these regimes from condemnation and sanctions, using its veto power as a permanent member of the Security Council to block resolutions aimed at holding these governments accountable for their actions. This diplomatic backing has allowed countries such as Russia, Iran, and North Korea to operate with relative impunity, even as they engage in activities that threaten regional security and violate international law.


Beyond mere diplomatic protection, China also provides critical support to these nations through trade, technology transfers, and investment, often circumventing Western sanctions to enable these rogue states to continue their militaristic and destabilising activities. For instance, China has been a crucial partner in supplying Iran with both advanced technologies and financial support, helping it circumvent sanctions imposed by the West on its nuclear programme and enabling it to extend its influence across the Middle East. Similarly, Beijing has maintained close economic and military ties with North Korea, despite the regime’s continued provocations, including its missile tests and threats to regional stability. These actions not only serve China’s strategic interests in counterbalancing US influence in the region but also advance its broader goal of eroding the global order led by Western democracies.


Furthermore, China's role extends into more covert, insidious activities that exploit Western vulnerabilities for its own gain. One of the most alarming examples is Beijing's involvement in the fentanyl crisis in the United States. Through the illicit supply of precursor chemicals used in the production of fentanyl, China has contributed to a deadly opioid epidemic that has claimed tens of thousands of American lives. While the Chinese government officially claims to have cracked down on the export of these substances, investigations and reports consistently reveal that Chinese manufacturers continue to ship vast quantities of these chemicals to transnational criminal networks. By facilitating the flow of fentanyl into the US, China is not only fuelling a public health catastrophe but is also destabilising American society, creating social unrest, and weakening the nation’s global standing. This willingness to exploit Western weaknesses for strategic leverage illustrates China’s broader approach to international relations: one that prioritises its own geopolitical ambitions at the expense of global stability and adherence to international norms. In doing so, China further erodes the credibility of international institutions and deepens its challenge to the West’s leadership on the world stage.


Currency Manipulation: An Economic Weapon
Currency manipulation remains a key component of China’s economic strategy, serving as a powerful weapon in its broader geopolitical and trade ambitions. By keeping the yuan artificially devalued, Beijing is able to secure a significant competitive advantage in global trade, enabling its exports to be cheaper on the world market. This practice undermines the economic interests of Western nations by distorting fair competition, allowing Chinese goods to flood markets at prices that Western producers struggle to match. This artificially low currency value also makes Chinese products more attractive to consumers, while Western goods, often priced higher due to market-driven exchange rates, face increased difficulty in competing. The result is a significant imbalance in trade relations, with China benefiting at the expense of Western industries, many of which are left to absorb the negative impact of these unfair practices.


During the previous, and now current Trump administration, the United States took and is taking a firm stance against China's currency manipulation, employing tariffs and direct confrontations in an attempt to force Beijing to alter its policies. These measures were designed not only to address trade imbalances but also to confront the broader issue of economic manipulation, which was seen as contributing to the erosion of American manufacturing and technological competitiveness. The US sought to push China toward a more market-oriented approach, calling for the end of its manipulation of the yuan and pressing for greater transparency in its financial practices. While these actions were met with resistance and retaliation from China, they served as a pointed challenge to Beijing's economic policies.


However, the response from Europe has been markedly different. Unlike the US, which pursued a more aggressive policy of tariffs and direct action, European nations have largely been reluctant to challenge China’s currency practices with the same intensity. Instead, Europe's approach has been characterised by a degree of hesitancy, if not outright indifference, in confronting Beijing over its economic manipulation. In part, this reluctance stems from Europe's desire to maintain lucrative trade relations with China, which has become an essential economic partner for many European countries. The European Union has often been reluctant to introduce measures that might strain these relations, fearing the potential economic fallout from antagonising one of the world’s largest economies. As a result, European policymakers have failed to present a unified front with the United States on this issue, leaving the US to bear much of the diplomatic and economic weight in confronting China's currency manipulation.


This lack of coordination between the US and Europe in addressing China's economic practices highlights a deeper division in Western responses to Beijing’s growing influence. While the US has prioritised confronting China's trade and currency manipulation as part of a broader strategy to safeguard its economic interests, many European nations appear more focused on short-term economic gain, often at the expense of a long-term strategy that addresses China’s manipulation and its broader implications for global trade fairness. By prioritising immediate trade relations over coordinated action, Europe’s response to China’s currency tactics remains weak and fragmented, ultimately weakening the collective bargaining power of the West in its dealings with Beijing. This divided approach leaves China with greater leeway to pursue its economic strategies unchallenged, further consolidating its dominance in the global trade landscape.


Europe’s Perplexing Strategy
Europe’s strategic approach, or, more accurately, its lack of a coherent and unified strategy, has become increasingly perplexing and concerning in the face of rising global challenges. Rather than prioritising the strengthening of their own defence capabilities, European leaders have, for years, continued to divert significant resources towards addressing the issue of unchecked mass migration. While migration is undoubtedly a complex and multifaceted issue requiring a balanced approach, the way in which it has been managed in recent years has placed a disproportionate strain on public services, such as healthcare, education, and housing. As these services become overwhelmed, the quality of life for ordinary citizens begins to deteriorate, fostering a sense of frustration and disillusionment among the population.


This influx of migrants, particularly when not accompanied by comprehensive integration strategies, has also contributed to growing societal divisions across European nations. The tensions between established populations and newcomers, often exacerbated by cultural differences, economic competition, and strained social services, have eroded the social cohesion that once formed the foundation of European societies. Furthermore, the lack of a clear framework for managing migration has led to a sense of insecurity and fear among many citizens, who perceive these demographic changes as a threat to their own way of life and to the European identity that has evolved over centuries. In this context, Europe’s failure to adequately address these concerns has sparked populist movements that capitalise on the growing sense of alienation and dissatisfaction, ultimately undermining the stability of the political landscape.


At the same time, European leaders’ emphasis on migration has been accompanied by a concerning underinvestment in defence and security, especially at a time when global threats are becoming more pronounced. While the EU has long prided itself on its commitment to peace and diplomacy, the rise of assertive powers such as China and Russia, coupled with the increasing instability in regions like the Middle East and Africa, demands a more robust and forward-thinking approach to defence. Yet, Europe continues to fall short, often relying on NATO and the United States for military support while failing to significantly bolster its own defensive capabilities. This lack of investment in defence infrastructure, combined with an overreliance on external security assurances, weakens Europe’s ability to independently safeguard its interests and respond to emerging threats.


Most troubling of all, Europe’s lack of a cohesive strategy in confronting both internal and external challenges, be it in terms of defence or migration, has left the continent increasingly vulnerable to encroachments on its sovereignty and security. The failure to effectively respond to the growing influence of China, both economically and geopolitically, further exacerbates this vulnerability. While Beijing continues its calculated efforts to expand its influence, particularly through economic leverage and strategic partnerships, Europe’s lack of a unified stance undermines its ability to protect its interests on the global stage. By prioritising short-term political and economic considerations over long-term security planning, European leaders are, in effect, jeopardising the continent’s sovereignty, leaving it exposed to both external threats and internal fractures that threaten its cohesion and stability. The consequences of this miscalculation could be profound, as Europe risks becoming increasingly irrelevant in global power dynamics while struggling to maintain the social contract with its citizens.


Trump’s Strategic Realignment
The previous Trump administration, along with the newly re-elected second Trump administration, despite the often contentious and provocative rhetoric, clearly recognised the strategic challenge posed by China. Beijing’s ambitions are not limited to economic expansion but are deeply rooted in a desire to fundamentally reshape the global order to serve its own authoritarian and hegemonic model. China’s growing influence is a direct challenge to the liberal international system that has underpinned global stability and prosperity since the end of World War II. By positioning itself as a direct competitor to the United States, China aims to revise global norms, economic structures, and political influence in a way that elevates its authoritarian system while diminishing the influence of democratic nations.


Trump’s "America First" policy sought to recalibrate US foreign policy priorities, with a clear emphasis on countering China’s rise. Central to this strategy was the recognition that the US could no longer afford to carry the full burden of global security, particularly in Europe. As part of his vision, Trump expected European allies to assume greater responsibility for their own defence, pushing NATO members to meet their defence spending commitments and encouraging them to become more self-reliant in military matters. This approach, which aimed to reduce American involvement in Europe’s security while increasing pressure on European nations to strengthen their own defence capabilities, was grounded in the belief that the US needed to pivot more toward addressing the growing threat posed by China in the Indo-Pacific and globally.


However, this recalibration of priorities comes with significant risks and potential unintended consequences. By deprioritising the transatlantic relationship and shifting focus away from European security concerns, the US risks destabilising the very alliances that have historically been the backbone of Western cohesion. The strength of the West has long rested on its unity, particularly through NATO and other multilateral institutions, and any weakening of these ties could inadvertently drive Europe into closer alignment with China and Russia. In the absence of a robust and engaged American presence in Europe, European nations, especially those facing mounting security concerns from Russia, may feel compelled to seek alternative partnerships. China, with its economic influence and promises of strategic cooperation, and Russia, with its military ambitions and desire to destabilise Western unity, could appear as more attractive partners for certain European states that feel neglected by the US.


Such a shift in Europe’s allegiances would have far-reaching consequences for the global balance of power. Closer ties between Europe, China, and Russia could undermine Western unity, fracturing the transatlantic alliance and eroding the shared values of democracy, human rights, and the rule of law that have been the cornerstone of Western civilisation. It would also allow China and Russia to exploit divisions within Europe to further their own geopolitical interests, potentially advancing their authoritarian models at the expense of democratic governance. This fragmentation could weaken the West’s collective ability to confront emerging threats, whether from state actors like China and Russia or from global challenges such as terrorism, cyberattacks, and climate change.
In essence, while the Trump administration’s strategy of shifting the burden of defence onto Europe and focusing more on China was rooted in a desire to recalibrate US priorities, it risks inadvertently driving a wedge between the US and its European allies. The long-term consequences of this could undermine the very alliances that have kept the West united and strong in the face of external threats. If Europe perceives itself as abandoned or inadequately supported, it could lean towards more pragmatic partnerships with Beijing and Moscow, further eroding the coherence of the Western bloc and undermining its ability to effectively respond to the challenges posed by an increasingly assertive China.


Beijing’s Opportunism
Beijing, ever opportunistic and adept at exploiting shifts in global dynamics, would undoubtedly seize the opportunity to redirect its trade flows away from the United States towards Europe in response to US tariffs and economic pressure. Such a move would allow China to mitigate the impact of American tariffs, diversifying its trade relationships and reducing its dependency on the US market. By increasing its trade with Europe, China would further entrench its role at the centre of the global economy, solidifying its influence across a wide range of industries and securing vital economic partnerships in Europe. This shift would have significant implications for both the US and Europe, with the former potentially finding itself increasingly isolated from its natural allies as Europe deepens its economic ties with China.


Europe, already grappling with rising economic and security challenges, could, in its pursuit of short-term prosperity, be lured into a deeper trade relationship with China. Amid the pressures of economic stagnation, demographic shifts, and security concerns, European nations, particularly those with close ties to China through trade and investment, might view the growing economic partnership with Beijing as a necessary strategy to maintain prosperity. However, in doing so, Europe risks inadvertently legitimising and empowering the very authoritarian regime that stands in direct opposition to the democratic values that have long been the foundation of Western society. Beijing's ambitions to reshape the global order in its own image, with an increasingly assertive foreign policy, would be reinforced by Europe's willingness to cooperate economically, regardless of the political and ethical ramifications.


The short-term bureaucratic thinking within the European Union (EU) could exacerbate this danger. The EU’s often fragmented and pragmatic approach to decision-making, driven by a desire to preserve stability and prosperity, might overlook or downplay the longer-term risks posed by growing dependence on China. In seeking to maintain economic growth in the face of internal and external challenges, EU leaders may fail to fully recognise the broader strategic implications of deepening ties with Beijing. While China offers a lucrative market and significant economic opportunities, the EU's reliance on Chinese trade and investment could come at the cost of undermining its own autonomy and security. The EU’s adherence to short-term economic interests, coupled with a reluctance to confront China over issues such as human rights abuses, cyber espionage, and military expansionism, would enable Beijing to continue its rise as a global power with few constraints.


Moreover, Europe’s economic engagement with China could embolden Beijing to further assert its influence across the globe. By strengthening its economic leverage over Europe, China could use this influence to pursue policies that directly challenge the West’s geopolitical interests. Whether through the Belt and Road Initiative (BRI), expanding its footprint in key industries, or strategically investing in critical infrastructure, Beijing’s growing economic ties with Europe would ultimately enhance its ability to shape the global order according to its own authoritarian vision. This would not only isolate the US from its traditional European allies but also leave Europe in a precarious position, caught between the growing influence of China and the political realities of its own security needs.


In the long run, the EU’s short-term calculations could have profound consequences for the Western alliance, particularly if Europe becomes too reliant on Beijing’s economic largesse. By strengthening ties with China, Europe risks legitimising a regime that stands at odds with the very values it seeks to protect, democracy, human rights, and the rule of law. In doing so, Europe could inadvertently undermine the principles of freedom and openness that have long been its defining characteristics, trading them for economic gain in the short term. This shift in priorities, driven by pragmatic thinking, would not only weaken Europe’s strategic autonomy but also embolden China’s efforts to reshape the global order, with Europe as a passive participant in its vision for the future.


The Urgent Call for European Awakening
The question that looms large is: why does Europe continue to sleepwalk into this perilous dynamic with China? The reality is stark, Beijing’s influence is no longer just a distant concern; it is at Europe’s doorstep, and has already breached the gates. China has infiltrated Europe’s supply chains, subtly woven itself into critical sectors, and methodically expanded its influence over European policymaking. Through investments, trade agreements, and strategic alliances, Beijing has gained unprecedented access to vital infrastructure, resources, and decision-making processes that should have remained firmly under European control. Beyond economic entanglements, China has exploited the divisions within Europe, leveraging differing national priorities to undermine any cohesive, unified response to its growing power.


The growing Chinese influence should not be viewed as an isolated threat to European prosperity but as a direct assault on Europe’s sovereignty, security, and the very values that underpin its democratic fabric. If Europe continues to ignore the creeping encroachment of China’s influence, it risks surrendering key areas of its autonomy and geopolitical standing. The fragility of the Western alliance, once a bulwark of collective security and shared democratic principles, could be further exposed. As Beijing extends its reach through covert economic warfare, the manipulation of global trade systems, and military expansions in strategic regions, Europe faces the real possibility of being sidelined in global geopolitics, leaving the West fragmented and weakened in the face of a rising authoritarian power.


It is imperative that Europe awakens to the looming danger that China represents, and takes immediate, decisive action to mitigate the growing threat. The time has come for European nations to prioritise the security and well-being of their citizens over the entrenched bureaucracy and misguided compromises of the European Union. For too long, EU institutions have been bogged down by bureaucratic inertia, pushing policies that focus on short-term economic gain without a long-term vision of security and strategic autonomy. Europe’s current lack of unified action has made it an increasingly vulnerable pawn in China’s global game. The priority now must be to reinforce national defences, recalibrate policy frameworks, and curb the over-reliance on Chinese trade and investment.


In order to safeguard its future and reclaim its place as a leading global force, Europe must strengthen ties with like-minded democracies, such as the United States, the United Kingdom, and Canada, nations that share common interests and concerns regarding China’s expansionist policies. These traditional Western allies must move beyond the current fragmentation and work collaboratively to counter China’s ever-expanding reach. This will require not just diplomatic unity, but an integrated approach to military cooperation, technological innovation, and economic strategy, so that the West can stand resolute against Beijing’s aggressive, often covert, attempts to dominate the global stage.


Only through a united, decisive, and coordinated approach can the West hope to safeguard its collective future. The challenges posed by China are immense, but they are not insurmountable. With a strategic focus on strengthening internal security, building robust external alliances, and reasserting a collective Western commitment to democratic values, Europe, and the broader Western alliance, can confront this modern-day Goliath. The stakes are high, and the window for action is narrowing. If Europe is to preserve its sovereignty, its democratic institutions, and its position in the world order, it must rise to the challenge now, before it is too late.


N.B. - Read - “The Dragon's Gambit: China's Bid for Global Dominance and the Western Response “, it provides a detailed, multifaceted exploration and a critical examination of China's strategic ambitions and the global repercussions.