Economic Warfare between the US, Europe and China?
A presentation by Prof. Dr. Gabriel Felbermayr
17.09.25 / Vienna
On September 17, 2025, the Austria Institute for European and Security Policy (AIES), in cooperation with the Vienna School for International Studies, organized a lecture on the topic of “Economic War between the US, Europe and China?” with Prof. Dr. Gabriel Felbermayr, Director of the Austrian Institute of Economic Research. The event was moderated by AIES President Dr. Werner Fasslabend. Participants were welcomed by AIES Director Michael Zinkanell.
The event focused on how the geopolitical rivalry between the United States and China is reshaping the international economic order and what this implies for Europe. It became evident that, despite the pandemic, wars, and political tensions, globalization continues to demonstrate remarkable resilience. At the same time, its character has changed: trade policy is increasingly instrumentalized and used as a strategic instrument of power. As a result, economic interdependence is no longer assessed solely in terms of efficiency but is increasingly viewed through security and geopolitical lenses.
Particular attention was given to the role of the United States, whose trade policy is marked by high volatility and shifting tariffs. This unpredictability undermines trust in the transatlantic partnership and forces Europe to reassess its dependencies. At the same time, China is shifting global balances, both economically and politically. Europe’s strong import dependence on China highlights structural vulnerabilities that could have severe consequences for European living standards in the event of a trade conflict.
For the European Union, it was emphasized that its best defense lies in a strong and deepened single market. Existing initiatives such as the Banking Union, the Energy Union, and the Capital Markets Union show that integration efforts are underway, but what is still lacking is an overarching political narrative that strategically connects these measures. Without such a narrative, fragmentation and slow action loom as national agendas dominate. In addition, industrial policy, technological innovation, and the reduction of critical dependencies were highlighted as essential prerequisites for Europe to assume an autonomous and resilient role within the global power structure.
