While the trade conflict between the US and China seems to be abating, their rivalry on technology is heating up. Their race for leadership will likely extend into the monetary realm. China has indicated it could respond to tariffs or tech-related measures by the US with currency movements. If so, Europe will inevitably be dragged into the conflict. The euro area needs to be proactive to prevent the euro from becoming a variable in an economic conflict in which it cannot remain an innocent bystander.
Geo-economics – one of DGAP’s core themes – explores how the politics of trade, technology, finance, and/or energy can be employed to achieve strategic goals. For Europe to remain a key player internationally, the continent must help define the rules of a new geo-economic world order. DGAP looks at how Germany can contribute to better positioning Europe in this increasingly competitive landscape.