America’s allies are flocking to China
The Economist
February 25, 2026
AI-Generated Deep Dive Summary
As global politics undergoes a significant shift under President Donald Trump's leadership, American allies are increasingly diversifying their diplomatic relationships, with many turning to China. This strategic realignment is evident as several key U.S. partners, including France and Germany, have stepped up high-level engagements with Beijing, despite limited concrete economic outcomes from these visits. While the meetings may not yield immediate deals, they serve as symbolic victories for China, reinforcing its growing influence on the global stage.
The rise of protectionist trade policies under Trump has created uncertainty among traditional U.S. allies, prompting them to explore new avenues for economic collaboration. For instance, European nations are showing renewed interest in Chinese markets, particularly in sectors like technology and infrastructure. This shift reflects a broader effort by these countries to balance their relationship with the United States while hedging against potential risks associated with Trump's "America First" approach.
China sees these diplomatic overtures as an opportunity to strengthen its global standing and counterbalance U.S. influence. By engaging with key allies of the United States, Beijing is not only expanding its economic partnerships but also signaling its readiness to play a more prominent role in international affairs. This strategic move aligns with China's long-term goals of becoming a dominant player in global trade and diplomacy.
From a business perspective, this realignment presents both opportunities and challenges. Companies operating in the United States and its traditional allies may face a shifting competitive landscape as economic ties between these nations evolve. Meanwhile, businesses in China could benefit from increased access to European markets and technological collaboration, further solidifying China's position as a global economic powerhouse.
Ultimately, the growing diplomatic and economic rapprochement between American allies and China underscores a fundamental shift in global trade dynamics. As the world navigates an increasingly uncertain political climate, businesses must remain attuned to these evolving relationships and their potential impact on international markets.
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Originally published on The Economist on 2/25/2026