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Energy & Economics
Comparison of Drought and flood metaphor for climate change and extreme weather.

Global Climate Agreements: Successes and Failures

by Clara Fong , Lindsay Maizland

International efforts, such as the Paris Agreement, aim to reduce greenhouse gas emissions. But experts say countries aren’t doing enough to limit dangerous global warming. Summary Countries have debated how to combat climate change since the early 1990s. These negotiations have produced several important accords, including the Kyoto Protocol and the Paris Agreement. Governments generally agree on the science behind climate change but have diverged on who is most responsible, how to track emissions-reduction goals, and whether to compensate harder-hit countries. The findings of the first global stocktake, discussed at the 2023 UN Climate Summit in Dubai, United Arab Emirates (UAE), concluded that governments need to do more to prevent the global average temperature from rising by 1.5°C. Introduction Over the last several decades, governments have collectively pledged to slow global warming. But despite intensified diplomacy, the world is already facing the consequences of climate change, and they are expected to get worse. Through the Kyoto Protocol and Paris Agreement, countries agreed to reduce greenhouse gas emissions, but the amount of carbon dioxide in the atmosphere keeps rising, heating the Earth at an alarming rate. Scientists warn that if this warming continues unabated, it could bring environmental catastrophe to much of the world, including staggering sea-level rise, devastating wildfires, record-breaking droughts and floods, and widespread species loss. Since negotiating the Paris accord in 2015, many of the 195 countries that are party to the agreement have strengthened their climate commitments—to include pledges on curbing emissions and supporting countries in adapting to the effects of extreme weather—during the annual UN climate conferences known as the Conference of the Parties (COP). While experts note that clear progress has been made towards the clean energy transition, cutting current emissions has proven challenging for the world’s top emitters. The United States, for instance, could be poised to ramp up fossil fuel production linked to global warming under the Donald Trump administration, which has previously minimized the effects of climate change and has withdrawn twice from the Paris Agreement. What are the most important international agreements on climate change? Montreal Protocol, 1987. Though not intended to tackle climate change, the Montreal Protocol [PDF] was a historic environmental accord that became a model for future diplomacy on the issue. Every country in the world eventually ratified the treaty, which required them to stop producing substances that damage the ozone layer, such as chlorofluorocarbons (CFCs). The protocol has succeeded in eliminating nearly 99 percent of these ozone-depleting substances. In 2016, parties agreed via the Kigali Amendment to also reduce their production of hydrofluorocarbons (HFCs), powerful greenhouse gases that contribute to climate change. UN Framework Convention on Climate Change (UNFCCC), 1992. Ratified by 197 countries, including the United States, the landmark accord [PDF] was the first global treaty to explicitly address climate change. It established an annual forum, known as the Conference of the Parties, or COP, for international discussions aimed at stabilizing the concentration of greenhouse gases in the atmosphere. These meetings produced the Kyoto Protocol and the Paris Agreement. Kyoto Protocol, 2005. The Kyoto Protocol [PDF], adopted in 1997 and entered into force in 2005, was the first legally binding climate treaty. It required developed countries to reduce emissions by an average of 5 percent below 1990 levels, and established a system to monitor countries’ progress. But the treaty did not compel developing countries, including major carbon emitters China and India, to take action. The United States signed the agreement in 1998 but never ratified it and later withdrew its signature.  Paris Agreement, 2015. The most significant global climate agreement to date, the Paris Agreement requires all countries to set emissions-reduction pledges. Governments set targets, known as nationally determined contributions (NDCs), with the goals of preventing the global average temperature from rising 2°C (3.6°F) above preindustrial levels and pursuing efforts to keep it below 1.5°C (2.7°F). It also aims to reach global net-zero emissions, where the amount of greenhouse gases emitted equals the amount removed from the atmosphere, in the second half of the century. (This is also known as being climate neutral or carbon neutral.) The United States, the world’s second-largest emitter, is the only country to withdraw from the agreement, a move President Donald Trump made during his first administration in 2017. While former President Joe Biden reentered the agreement during his first day in office, Trump again withdrew the United States on the first day of his second administration in 2025. Three other countries have not formally approved the agreement: Iran, Libya, and Yemen. Is there a consensus on the science of climate change? Yes, there is a broad consensus among the scientific community, though some deny that climate change is a problem, including politicians in the United States. When negotiating teams meet for international climate talks, there is “less skepticism about the science and more disagreement about how to set priorities,” says David Victor, an international relations professor at the University of California, San Diego. The basic science is that:• the Earth’s average temperature is rising at an unprecedented rate; • human activities, namely the use of fossil fuels—coal, oil, and natural gas—are the primary drivers of this rapid warming and climate change; and,• continued warming is expected to have harmful effects worldwide. Data taken from ice cores shows that the Earth’s average temperature is rising more now than it has in eight hundred thousand years. Scientists say this is largely a result of human activities over the last 150 years, such as burning fossil fuels and deforestation. These activities have dramatically increased the amount of heat-trapping greenhouse gases, primarily carbon dioxide, in the atmosphere, causing the planet to warm. The Intergovernmental Panel on Climate Change (IPCC), a UN body established in 1988, regularly assesses the latest climate science and produces consensus-based reports for countries. Why are countries aiming to keep global temperature rise below 1.5°C? Scientists have warned for years of catastrophic environmental consequences if global temperature continues to rise at the current pace. The Earth’s average temperature has already increased approximately 1.1°C above preindustrial levels, according to a 2023 assessment by the IPCC. The report, drafted by more than two hundred scientists from over sixty countries, predicts that the world will reach or exceed 1.5°C of warming within the next two decades even if nations drastically cut emissions immediately. (Several estimates report that global warming already surpassed that threshold in 2024.) An earlier, more comprehensive IPCC report summarized the severe effects expected to occur when the global temperature warms by 1.5°C: Heat waves. Many regions will suffer more hot days, with about 14 percent of people worldwide being exposed to periods of severe heat at least once every five years. Droughts and floods. Regions will be more susceptible to droughts and floods, making farming more difficult, lowering crop yields, and causing food shortages.  Rising seas. Tens of millions of people live in coastal regions that will be submerged in the coming decades. Small island nations are particularly vulnerable. Ocean changes. Up to 90 percent of coral reefs will be wiped out, and oceans will become more acidic. The world’s fisheries will become far less productive. Arctic ice thaws. At least once a century, the Arctic will experience a summer with no sea ice, which has not happened in at least two thousand years. Forty percent of the Arctic’s permafrost will thaw by the end of the century.  Species loss. More insects, plants, and vertebrates will be at risk of extinction.  The consequences will be far worse if the 2°C threshold is reached, scientists say. “We’re headed toward disaster if we can’t get our warming in check and we need to do this very quickly,” says Alice C. Hill, CFR senior fellow for energy and the environment. Which countries are responsible for climate change? The answer depends on who you ask and how you measure emissions. Ever since the first climate talks in the 1990s, officials have debated which countries—developed or developing—are more to blame for climate change and should therefore curb their emissions. Developing countries argue that developed countries have emitted more greenhouse gases over time. They say these developed countries should now carry more of the burden because they were able to grow their economies without restraint. Indeed, the United States has emitted the most of all time, followed by the European Union (EU).   However, China and India are now among the world’s top annual emitters, along with the United States. Developed countries have argued that those countries must do more now to address climate change.   In the context of this debate, major climate agreements have evolved in how they pursue emissions reductions. The Kyoto Protocol required only developed countries to reduce emissions, while the Paris Agreement recognized that climate change is a shared problem and called on all countries to set emissions targets. What progress have countries made since the Paris Agreement? Every five years, countries are supposed to assess their progress toward implementing the agreement through a process known as the global stocktake. The first of these reports, released in September 2023, warned governments that “the world is not on track to meet the long-term goals of the Paris Agreement.” That said, countries have made some breakthroughs during the annual UN climate summits, such as the landmark commitment to establish the Loss and Damage Fund at COP27 in Sharm el-Sheikh, Egypt. The fund aims to address the inequality of climate change by providing financial assistance to poorer countries, which are often least responsible for global emissions yet most vulnerable to climate disasters. At COP28, countries decided that the fund will be initially housed at the World Bank, with several wealthy countries, such as the United States, Japan, the United Kingdom, and EU members, initially pledging around $430 million combined. At COP29, developed countries committed to triple their finance commitments to developing countries, totalling $300 billion annually by 2035. Recently, there have been global efforts to cut methane emissions, which account for more than half of human-made warming today because of their higher potency and heat trapping ability within the first few decades of release. The United States and EU introduced a Global Methane Pledge at COP26, which aims to slash 30 percent of methane emissions levels between 2020 and 2030. At COP28, oil companies announced they would cut their methane emissions from wells and drilling by more than 80 percent by the end of the decade. However, pledges to phase out fossil fuels were not renewed the following year at COP29. Are the commitments made under the Paris Agreement enough? Most experts say that countries’ pledges are not ambitious enough and will not be enacted quickly enough to limit global temperature rise to 1.5°C. The policies of Paris signatories as of late 2022 could result in a 2.7°C (4.9°F) rise by 2100, according to the Climate Action Tracker compiled by Germany-based nonprofits Climate Analytics and the NewClimate Institute. “The Paris Agreement is not enough. Even at the time of negotiation, it was recognized as not being enough,” says CFR’s Hill. “It was only a first step, and the expectation was that as time went on, countries would return with greater ambition to cut their emissions.” Since 2015, dozens of countries—including the top emitters—have submitted stronger pledges. For example, President Biden announced in 2021 that the United States will aim to cut emissions by 50 to 52 percent compared to 2005 levels by 2030, doubling former President Barack Obama’s commitment. The following year, the U.S. Congress approved legislation that could get the country close to reaching that goal. Meanwhile, the EU pledged to reduce emissions by at least 55 percent compared to 1990 levels by 2030, and China said it aims to reach peak emissions before 2030. But the world’s average temperature will still rise more than 2°C (3.6°F) by 2100 even if countries fully implement their pledges for 2030 and beyond. If the more than one hundred countries that have set or are considering net-zero targets follow through, warming could be limited to 1.8˚C (3.2°F), according to the Climate Action Tracker.   What are the alternatives to the Paris Agreement? Some experts foresee the most meaningful climate action happening in other forums. Yale University economist William Nordhaus says that purely voluntary international accords like the Paris Agreement promote free-riding and are destined to fail. The best way to cut global emissions, he says, would be to have governments negotiate a universal carbon price rather than focus on country emissions limits. Others propose new agreements [PDF] that apply to specific emissions or sectors to complement the Paris Agreement.  In recent years, climate diplomacy has occurred increasingly through minilateral groupings. The Group of Twenty (G20), representing countries that are responsible for 80 percent of the world’s greenhouse gas pollution, has pledged to stop financing new coal-fired power plants abroad and agreed to triple renewable energy capacity by the end of this decade. However, G20 governments have thus far failed to set a deadline to phase out fossil fuels. In 2022, countries in the International Civil Aviation Organization set a goal of achieving net-zero emissions for commercial aviation by 2050. Meanwhile, cities around the world have made their own pledges. In the United States, more than six hundred local governments [PDF] have detailed climate action plans that include emissions-reduction targets. Industry is also a large source of carbon pollution, and many firms have said they will try to reduce their emissions or become carbon neutral or carbon negative, meaning they would remove more carbon from the atmosphere than they release. The Science Based Targets initiative, a UK-based company considered the “gold standard” in validating corporate net-zero plans, says it has certified the plans of  over three thousand firms, and aims to more than triple this total by 2025. Still, analysts say that many challenges remain, including questions over the accounting methods and a lack of transparency in supply chains. Recommended Resources This timeline tracks UN climate talks since 1992. CFR Education’s latest resources explain everything to know about climate change.  The Climate Action Tracker assesses countries’ updated NDCs under the Paris Agreement. CFR Senior Fellow Varun Sivaram discusses how the 2025 U.S. wildfires demonstrate the need to rethink climate diplomacy and adopt a pragmatic response to falling short of global climate goals. In this series on climate change and instability by the Center for Preventive Action, CFR Senior Fellow Michelle Gavin looks at the consequences for the Horn of Africa and the National Defense University’s Paul J. Angelo for Central America. This backgrounder by Clara Fong unpacks the global push for climate financing.

Defense & Security
Brussels, Belgium – November 06 2023: new pack of economic EU sanctions against Russia, vector cartoon illustration on white

Who supports EU sanctions against Russia’s war in Ukraine? The role of the defence of European values and other socioeconomic factors

by Alessandro Indelicato , Juan Carlos Martína

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Introduction On 24 February 2022, Russia launched a full-scale invasion of Ukraine, following the military actions that began with the annexation of Crimea in 2014. The conflict is having devastating consequences, including widespread death and displacement, destruction of infrastructure, and a global energy crisis, also heightening geopolitical tensions (Kurapov et al., Citation2023). Pertiwi (Citation2024) contended that since the crisis in Eastern Ukraine and Russia’s annexation of Crimea in 2014, the European Union (EU) has adopted sanctions as the key policy response targeting Russia’s aggressive behaviour. These restrictive measures were applied by the EU in multiple rounds and packages and gradually became the cornerstone of the EU’s policy towards Russia. (p. 61) There is extant literature studying the direct consequences of the war, such as humanitarian crises, economic impacts and geopolitical instability. Numerous countries have experienced food shortages and rising prices due to disruptions in supply chains, worsened by the crisis in Ukraine and the closure of airspace (Hellegers, Citation2022). Concurrently, the war has caused an unprecedentedly volatile energy market, as many European countries were obliged to seek alternative energy sources to Russian imports, demanding more oil and natural gas from alternative suppliers (Liadze et al., Citation2022). The invasion has also fuelled inflation across the EU, not only affecting energy, which is essential in all the sectors of the economy but also other sectors like food, for example, as Ukraine is a major global grain producer (Ozili, Citation2024). The added value and main contribution of this paper is based on the use of grounded social scientific methods like the Fuzzy Hybrid TOPSIS and the Ordered Probit, to analyse the EU citizens’ support of the sanctions against Russia, providing more nuanced insights on what factors are the most important to be in favour and against the sanctions. Thus, in particular, our study contributes to filling one of the important gaps mentioned by Pertiwi (Citation2024) in the analysis of the literature on the EU’s approach to sanctions on Russia. Concretely, our study fills in part the fifth gap in the analysis of causal mechanisms that examine the sanctions, including relevant actors like the EU citizens. Thus, we first provide an in-depth analysis of European citizens’ views on EU sanctions to weaken Russia and support Ukraine. And then, we analyse the main factors that affect the EU citizens’ support of the sanctions taken by the EU against Russia and in favour of Ukraine. The study includes data from 26,461 respondents across the 27 EU Member States, collected through the 98th Eurobarometer survey (Winter 2022–2023), which examined the EU’s response to the war in Ukraine. The paper is organised as follows: Section 2 provides a brief overview of the literature review. Section 3 presents the dataset used, and the methodological approach. In Section 5, the results are presented, followed by Section 5, which offers a thorough discussion of the findings. Finally, Section 6 concludes the paper by summarising the main conclusions drawn from the study, identifying implications, limitations of the study, and potential directions for future research. Literature reviewAttitudes towards EU’s sanctions against Russia war in Ukraine Public sentiment for the EU is a complex phenomenon to study and needs to be approached from different angles, including identity, governance, security and the economy. How the public perceives the EU as a guardian of democratic values and good governance directly influences support for its policies, including sanctions on Russia. Boomgaarden et al. (Citation2011) argue that if the people believe that the EU is going to safeguard democratic principles, then they will identify sanctions as a proper means of safeguarding such principles. However, if there is a lack of trust in the EU to defend such values, there will be little support for such sanctions. The purpose of European identity is primarily to determine people’s views on the EU’s actions. Kende et al. (Citation2018) believe that European identity can have a profound impact on solidarity with common EU policies, such as sanctions. This would imply that the framing of a common European identity can become the most important factor in eliciting public consent for EU programmes, especially in the midst of geopolitical crises. Thus, public opinion on sanctions is also based on perceptions of the EU’s ability to act in the interests of citizens. According to McLean and Roblyer (Citation2016), if citizens perceive the EU as doing the best it can for its citizens, particularly in terms of economic stability and governance, they are more likely to support sanctions against Russia. However, if the EU is perceived as wasteful, or its policies are perceived as economically harmful, then the potential for support for sanctions will be low. This explains the need to ensure that EU action is consistent with shared perceptions of political effectiveness and economic benefit. The imposition of economic sanctions is one of the highest prioritised tools in the modern world, especially against threats to stability and security. The EU sanctions on Russia, especially after the annexation of Crimea and the invasion of Ukraine, have stimulated an immensely wide public discussion (Karlović et al., Citation2021). An important question is: What is the role of perceived security threats in shaping public opinion about these sanctions? It has been made known through investigation that subjective security risk strongly predicts public opinion regarding EU sanctions against Russia. Frye (Citation2019) argues that sanctions are not always supported but vary depending on how people view security threats. Public support is higher when sanctions are framed as protection against an external threat. When sanctions are perceived as a threat to national or economic security, they can generate opposition. The EU’s collective response to the Russia–Ukraine conflict also shows that public opinion on sanctions is shaped by both security interests and normative expectations of justice and self-determination (Bosse, Citation2024). This mutual influence can lead to mixed public responses, with some seeing sanctions as an ethical necessity, while others withdraw their support due to perceived economic and national security risks. The way EU sanctions are proposed and implemented also influences public opinion. According to Sjursen (Citation2015), citizens will be more supportive of sanctions if they see EU institutions as representative and transparent. Conversely, an image of bureaucratic distance or lack of public participation in decision-making can undermine trust and lead to opposition. Thus, in line with this background, we pose our first research question as follows: (1) How do European values and security threats influence the intensity of public support for EU sanctions against Russia?Socioeconomic factors in shaping attitudes towards EU sanctions Support for economic sanctions against Russia is widespread among the EU, varying according to socioeconomic status, demographic characteristics and political engagement. As Frye (Citation2017) has noted, economic prosperity is a key predictor of support for sanctions. Those who are financially ‘safe’ are more likely to support EU-imposed sanctions, as they are less directly affected by the economic burden. Previous studies have shown that those in more affluent income groups or with stable household finances are more likely to support foreign policy actions, such as sanctions, that represent broader European values, even if they are economically costly (Alexandrescu, Citation2024). This is consistent with the findings of Lepeu (Citation2025), which recognises that citizens who rate their own economic situation as ‘very good’ are far more likely to support sanctions than those facing financial hardship. On the other hand, citizens facing economic hardship are less likely to be sanction-supportive if they believe that sanctions will negatively impact inflation, increase unemployment or suppress national economic stability. Onderco (Citation2017) found that economic hardship is associated with higher scepticism towards foreign policy decisions that lack tangible personal benefits. This means that the economic price of sanctions is likely to disproportionately affect support among lower-income individuals. Generational differences also play a role in shaping public opinion on sanctions. Older individuals (over 55 years) are more supportive of EU sanctions, as they have a historical perspective on European security and are more politically engaged (Alexandrescu, Citation2024). On the other hand, younger people (15–34 years) have weaker support, possibly because they have different priorities, such as financial stability and employment, which could be considered more pressing than geopolitical concerns (Onderco, Citation2017). Alexandrescu (Citation2024) also suggests a new generational divide in attitudes towards coercive diplomacy, suggesting that efforts to build popular support for sanctions must consider young Europeans’ concerns and values about economic consequences and political transparency. Political interest is a second important predictor of support for EU sanctions. Politically knowledgeable and engaged citizens tend to be more supportive of EU foreign policy decisions, including sanctions (Alexandrescu, Citation2024). Thus, there is political ideology duality: left and centre-left voters support sanctions if they are anchored in a broader vision of upholding international law and human rights, while centre-right and populist voters are likely to be more sceptical if sanctions are perceived as infringing on national sovereignty (Onderco, Citation2017). As in the literature, the likelihood of being a strong supporter of EU sanctions depends on several socioeconomic and demographic factors, our second research question builds on the following: (2) Do socioeconomic characteristics influence the likelihood of being a strong supporter of EU sanctions against Russia?Dataset and methodology The dataset of the study is based on the Standard Eurobarometer 98.2 (EB98) survey Winter 2022–2023 which was conducted from 12 January to 6 February 2023 in 39 countries or territories. In the study, we only use the dataset from the 27 Member States of the EU, without considering the data from the other twelve additional countries included. The dataset was collected about a year after the start of the Russian invasion of Ukraine, covering the following five topic areas identified by the European Commission (Citation2024): (1) The EU’s response to the invasion of Ukraine; (2) the actions taken as a unified EU response to the invasion; (3) the consequences of the war in Ukraine; (4) the European security threat; and (5) the future EU actions in the wake of the war., and aims to analyse the solidarity of European citizens with the Ukrainian people. The sample size for each country was around 1000 respondents except for Malta with 503, making a total of 26,461 respondents. The endogenous variable of the study is obtained by applying the Fuzzy Hybrid TOPSIS approach to the items of the survey included to measure the degree of support of the respondents towards the measures taken by the EU in response to the Russian invasion of Ukraine. The following five items were included in the analysis: (1) financing the purchase and supply of military equipment to Ukraine; (2) imposing economic sanctions on the Russian government, companies and individuals; (3) providing financial support to Ukraine; (4) providing humanitarian support to the people affected by the war; and (5) welcoming into the EU people fleeing the war. The question introduction was the same for all the items: The EU has taken a series of actions as a response to Russia’s invasion of Ukraine. To what extent do you agree or disagree with each of these actions taken? The responses to the question for each item were given using a complete 5-point Likert scale, where: 1 = totally agree; 2 = tend to agree; 3 = do not know; 4 = tend to disagree; and 5 = totally disagree. The scale was reversed to enhance interpretability, ensuring that higher values are aligned with those citizens who expressed higher support for the measures taken by the EU. The analysis of the variables affecting the citizens’ support was based on the selection of 14 exogenous variables, including age, gender, political interest, perception of the situation in the country, employment personal perception, financial household perception, the labour market perception of the country, the provision of public services perception, the overall image of the EU, the perception of the threat posed by the Russian war in Ukraine to security in the EU and the country itself, the personal perception that standing against the Russian invasion of Ukraine, the EU is defending European values, and the political orientation. More information about the exogenous variables can be found in Table A1 in the appendix. The Ordered Probit model will provide interesting and nuanced results of whether some exogenous variables affect the support of the EU sanctions taken by the EU in response to the Russian invasion. For example, for each of the variables included in the analysis, it will be possible to analyse to what extent some of the categories support more or less the sanctions. Similarly, it will be possible to determine if some of the variables have a significant effect on the level of support. Methodology Opinion surveys are affected by the subjective judgments of respondents, leading to potential inaccuracy in interpreting response categories (Disegna et al., Citation2018). For instance, ‘totally agree’ for one respondent could be equivalent to simply ‘tend to agree’ for another. For this reason, Fuzzy Set Logic methods are becoming very popular in social sciences to manage the uncertainty associated with survey responses effectively (Cantillo et al., Citation2021; Indelicato & Martín, Citation2024). The study uses the Fuzzy Hybrid TOPSIS Approach to calculate the endogenous variable that measures the support (sup) of the respondents towards the sanctions taken by the EU against Russia. The method is grounded in the fuzzy set theory proposed by Zadeh (Citation1965), which was introduced for handling the inherent uncertainty and vagueness of information provided by answers to social surveys (Carlsson & Fullér, Citation2001; Disegna et al., Citation2018; Mamdani & Assilian, Citation1999). There are multiple fuzzy set representations that can be used to associate the categories of the answers given in the survey (Nguyen et al., Citation2005). In the study, we use the Triangular Fuzzy Numbers (TFNs), which are the most used fuzzy sets (Anand & Bharatraj, Citation2017; Wang, Citation2017). The final representation of the answers from the dataset is as follows: (1) totally disagree is represented by (0, 0, 30); (2) tend to disagree by (20, 30, 40); (3) do not know by (30, 50, 70); (4) tend to agree by (60, 70, 80); and (5) totally agree by (70, 100, 100). The hybrid nature of the method is based on the application of the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS), which calculates the synthetic indicator (Hwang & Yoon, Citation1981). We omit the mathematical formulation of the method for simplicity and ease of exposition. Interested readers can consult many existing papers, such as (Cantillo et al., Citation2023; Indelicato et al., Citation2023; Martín et al., Citation2020; Martín & Indelicato, Citation2023). We will use sup which provides relative support for the sanctions on Russia taken by the EU after invading Ukraine, as the dependent variable for the econometric model. The variable will be categorised into five quintiles according to the ranking of the indicator in order to use an ordered probit model. The marginal effects of the results will be used to analyse the main determinants that explain the highest support of EU citizens. In the study, we use the Daly normalisation for all the categories that act as exogenous variables in the model. Thus, it is possible to determine the marginal effects of each category with respect to the sample-weighted average. We omit the discussion of the technicalities of the model and exogenous variables normalisation. Interested readers can consult Daly et al. (Citation2016), Greene and Hensher (Citation2010), Hensher et al. (Citation2015) and Martin and Roman (Citation2021). Results Figure 1 shows the kernel density of the exogenous variable that measures the support of EU individuals for the sanctions against Russia taken by the EU for the whole sample (panel a) and for those who totally agree and totally disagree with the EU imposing the sanctions to defend European values (panel b). The results indicate that a small number of respondents do not support the sanctions imposed by the EU at all, with 170 citizens giving a score of 1 to all survey items included in the scale. Conversely, a significant portion of the population holds a more neutral position, as shown by responses falling in the range of 0.3–0.6. Additionally, a substantial number of citizens – specifically, 6430 – express their strong support for the sanctions by responding with a score of 5 to all items.  Figure 1. Support kernel density. Panel (b) of the figure clearly distinguishes between the two categories of respondents. It shows that those who strongly support the defence of European values are more in favour of the sanctions compared to those who strongly oppose them. Similar figure patterns are obtained for the categories of those who have a positive or negative image of the EU, and for those who think that the Russian invasion of Ukraine is seen as an important threat to the security of the EU. Nevertheless, this will be further discussed with the results of the ordered probit model. Table 1 shows the main drivers to support or not the sanctions taken by the EU against Russia. The table is obtained from the marginal effects obtained from the ordered probit model, which is in the fifth quintile of the support distribution, and refers to the citizen group of the strong supporters (Table A3, in the appendix). It can be seen that the main drivers to support the sanctions are totally agreeing that by standing against the Russian invasion, the EU is defending European values, having a very good or rather good image of the EU, totally agreeing that the EU security is under threat with the Russian invasion, and to have a very good financial situation in the household. All the coefficients are significant at 999 per thousand. The results of the ordered probit model, as well as the complete table of the marginal effects, can be consulted in the appendix. Table A2 shows that all the exogenous variables affect the support level except the area in which the respondent resides, so the support is transversal to whether the European lives in a rural, middle town or large town. It is also interesting to observe that all the threshold parameters of the ordered probit model result significant, i.e. the five different quintiles of the distribution can be allocated without the need to collapse some of the categories used in the estimation.  Table 1. Main drivers to be or not a strong supporter of the EU sanctions. Interestingly, the main drivers to be in the population segment of those who do not strongly support the EU sanctions are the opposite categories of supporting the sanctions: totally disagreeing or tending to disagree with the defence of European values, totally disagreeing or tending to disagree with the fact that the invasion of Ukraine is a security threat to the EU and having a very bad image of the EU. The coefficients of Table 1 have been extracted from Table A3, and need to be interpreted as follows: the coefficients are the marginal effects of the category to be or not a strong supporter of the EU sanctions. For example, the coefficient of 0.105 for individuals who totally agree that the EU is defending European values by standing against the Russian invasion of Ukraine indicates that this group has a 10.5 per cent higher likelihood of being strong supporters of EU sanctions compared to the average citizen in the overall sample. In a similar manner, the coefficient of −0.225 for the category of total disagreement indicates a 22.5 per cent lower probability of being a strong supporter. Other interesting results that can be seen in the complete marginal effects table (Table A3, in the appendix) are that the type of urbanisation where the respondent lives, namely rural village, small and mid-size town or large town, is the only variable of the twelve under analysis which does not have any significant effect on being a strong supporter of the sanctions. For the rest of the variables, there is always a category with more odds of being or not in the category of strong supporters. It is interesting to note that the younger generations (between 15 and 24 and between 25 and 34) are less likely to be in the category of strong supporters than those over 55, who are significantly more likely to be in this category. Similarly, those who have a strong political interest, have a good personal job situation, think that the economic situation of their country is rather good, are leftist or left-centre, think that the employment situation of the country is rather good, are males, or have a rather good financial situation have a higher probability of being in the category of strong supporters. Conclusions In a recent speech by Jens Stoltenberg, former Secretary General of NATO, the following assessment was made: In just a few weeks, NATO leaders will meet in Madrid. We will make important decisions. To continue to strengthen and adapt our Alliance to a new security reality and protect our people and our values. I look forward to the day when we can welcome both Finland and Sweden into our Alliance. This will make Finland and Sweden safer. NATO stronger. And the whole Euro-Atlantic area more secure. (NATO, Citation2022) Although NATO’s strategic decision affects the entire geopolitical landscape, public perceptions of EU sanctions need to be addressed through a more nuanced, evidence-based approach. Public opinion on sanctions is driven not only by security concerns but also by economic and political factors that underpin individual belief systems. To measure the determinants of support for such policies, this study applies both the fuzzy hybrid approach and the ordered probit model. The first method calculates the endogenous variable that measures the level of support of each respondent. The second method is used to find the main factors of a set of 14 exogenous variables or covariates that affect the support. Our results reveal that there are four important drivers to be a strong supporter of the sanctions taken by the EU against Russia after the invasion of Ukraine in early 2022: (1) totally agreeing that by standing against the Russian invasion of Ukraine, the EU is defending European values, (2) having a very good overall EU image, (3) totally agreeing that Russia’s invasion of Ukraine is a threat to the security of the EU, and (4) having a very good household financial situation. Other factors, such as age, gender, or political orientation, among others, are less determinant in explaining the strong support category. The dataset for the study was obtained from the 98th Eurobarometer, covering winter 2022–2023, providing a solid foundation for the objectives pursued in the study. Our results imply that, at least in the salient category of being a strong supporter of the EU sanctions, European Parliamentarians and the political parties involved should promote a triad: the defence of European values (Anghel & Jones, Citation2023), a more integrated security defence system that will permit the EU to be more independent from NATO and US (Del Sarto Citation2016; Howorth Citation2018), and a solid campaign of improving the EU image, highlighting the benefits of being in the union (Elmatzoglou, Citation2020). The European values of human rights and dignity, as well as the principles of living in liberal democracies, should not be undermined by misinformation campaigns from autocratic regimes. The invasion of Ukraine constitutes the biggest security threat in Europe since the end of the Cold War, fostering a wave of fear and real politics about the necessity of increasing the military budget. Europeans have seen more closely how the lives of human beings are worth almost nothing when their homes are bombed, and they have to leave with just the bare minimum, stopping their daily lives and becoming refugees in countries that may not welcome them with open arms. There is a need for effective communication campaigns that change the focus from generic issues such as ‘Europeanness’ fostering a common national identity or sense of belonging to a pragmatic branding strategy that achieves a power actor in the new turbulent geopolitical battlefield. Recent developments, in the light of newly elected President Donald Trump’s views on NATO and US foreign aid, have added uncertainty to the EU’s strategic calculus on sanctions. Trump’s concerns about NATO’s burden-sharing and his ambivalent stance on continued US military aid to Ukraine have set off alarm bells among EU policymakers and underscored the need for a European security policy that is less dependent on US leadership (Sorgi, Citation2025). Thus, it is the time for a more than-less European Union mentality that decreases Euroscepticism, a time to strengthen public support for the EU. This shift requires an emphasis on the tangible benefits that EU membership brings to member states, including economic stability, enhanced security, and the promotion of shared values like democracy and human rights. By fostering greater awareness and understanding of the EU’s role in addressing cross-border challenges, citizens can better appreciate the advantages of unity over division. Engaging with local communities, encouraging open dialogues, and actively involving citizens in EU decision-making processes can further bridge the gap between the EU and its citizens, reinforcing a sense of belonging and shared purpose. This study has some limitations that can be addressed in future studies. First, the dataset is a point-in-time measure of public opinion, surveyed in the winter of 2022–2023. Due to the dynamic nature of the geopolitical environment, longitudinal studies are needed to examine how public support for EU sanctions may change over time in response to political, economic and military events. Second, other external factors can also be examined to gain a better picture of how other factors could shape people’s opinions. These range from cultural equivalence with Ukraine to geographical proximity to the war zone, exposure to social media narratives, and interaction with Ukrainian refugees. The role of media frames and disinformation campaigns in determining views on EU sanctions is another area that would require more work. Third, latent variables such as societal resilience, institutional trust, geopolitical affinity, and adherence to European values could provide a better understanding of the reasons for support or opposition to EU sanctions. Such variables could also explain the differences in public opinion between EU member states and between different demographic groups. Furthermore, as previous studies on public support (Onderco et al., Citation2023) have also shown, a comparative analysis with previous surveys, for example, in 2008 (Russia-Georgia war), 2014 (annexation of Crimea and Donbas war) with the full invasion of Ukraine in 2022–2023, could also be very useful. Although not directly compared in the current study, future research would benefit from a historical analysis component to explore the continuities and shifts in public opinion during these major geopolitical events and how they change in different EU countries. This would provide a better insight into how threat perceptions, economic concerns and EU identity evolve in response to Russian aggression and EU foreign policy initiatives. Supplemental Material Supplemental data for this article can be accessed online at https://doi.org/10.1080/23745118.2025.2476484. Additional informationFunding Dr Alessandro Indelicato research is funded by the research fellowship “Catalina Ruiz,” provided by the Consejo de Economía, Conocimiento y Empleo of the Gobierno de Canarias, the Agencia Canaria De Investigación Innovación Y Sociedad De La Información (ACIISI), and Fondo Social Europeo of the EU, through the Universidad de Las Palmas de Gran Canaria (Spain). Martín, J. C., & Indelicato, A. (2025). 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Diplomacy
Cyber Diplomacy Word Cloud. Key concepts and vocabulary in international digital cooperation and policy.

Cyber Diplomacy and the Rise of the 'Global South'

by André Barrinha , Arindrajit Basu

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском On September 24, 2024, speaking from the gargantuan Kazan International Exhibition Centre during the BRICS Summit in Russia, Chinese President Xi Jinping emphatically extolled the “collective rise of the Global South [as] a distinctive feature of the great transformation across the world.” While celebrating “Global South countries marching together toward modernization [as] monumental in world history and unprecedented in human civilization,” the Chinese leader hastened to add that China was not quite a part of but at the Global South’s “forefront”; that “will always keep the Global South in [their] heart, and maintain [their]roots in the Global South. As emerging powers in the BRICS+ grouping thronged Kazan in a clear sign to the West that they would not unwittingly entrench Vladimir Putin’s full-scale diplomatic isolation, China’s message was clear: as a great power, they would not ignore or undermine the interests of the Global South.  The rise of the Global South as a central voice in world politics concurs with the emergence of cyber diplomacy as a diplomatic field. This is not a coincidence, as they are both intimately related to broader changes in the international order, away from a US-led liberal international order, toward a post-liberal one, whose contours are still being defined, but where informal groupings, such as the BRICS+ play a key role. One could even argue that it is this transition to a new order that has pushed states to engage diplomatically on issues around cyberspace. What was once the purview of the Global North, and particularly the US, is now a contested domain of international activity. In this text we explore how the Global South has entered this contestation, and how it articulates its ever-growing presence in shaping the agenda of this domain. However, as cyber diplomacy is mainstreamed across the Global South, it is unclear whether it will continue to be a relevant collective force in forging the rules and norms that govern cyberspace, or whether the tendency will be for each country to trace their own path in service of their independent national interests. The evolution of cyber diplomacy in a post-liberal world Cyber diplomacy is very recent. One could argue that its practice only really started in the late 1990s, with Russia’s proposal of an international treaty to ban electronic and information weapons. Cyber diplomacy, as “the use of diplomatic resources and the performance of diplomatic functions to secure national interests with regard to the cyberspace” (or more simply, to the “the application of diplomacy to cyberspace”  is even more recent, with the first few writings on the topic emerging only in the last 15 years.   To be sure, the internet was born at the zenith of the US-led liberal international order and was viewed as an ideal tool to promote based on liberalism, free trade and information exchange with limited government intervention and democratic ideals. Cyber libertarians extolled the virtues of an independent cyberspace, free from state control and western governments, particularly the US, did not disagree. They viewed the internet as the perfect tool for promoting US global power and maintaining liberal hegemony -“ruling the airwaves as Great Britain once ruled the seas.” The internet was ensconced in the relatively uncontested unipolar geopolitical moment. As the pipe dreams of a liberal cyberspace began to unravel with China and Russia pushing for an alternate state-centric vision of cyberspace, cyber diplomacy began to emerge both as a “response to and continuing factor in the continuing battle in and over cyberspace.” Explicitly, we can pin down its origin to two factors. First, is the perception that cyberspace was becoming an increasingly intertwined with geopolitics and geo-economics, with states starting to better understand its threats, but also its opportunities. Moonlight Maze, the 2007 attacks against Estonia or even Stuxnet were all cases that helped focus the mind of policymakers around the world. Second, the broader context of underlying changes in the international order necessitated cyber diplomacy as a bridge-building activity both to mitigate great power rivalry and to preserve the stability of cyberspace and the digital economy. Private companies, till then the beneficiaries of an open and de-regulated internet, also had to step in to ensure that their own interests and profit motives were safeguarded. These two intertwined factors dominated the discussions around cyber diplomacy for most of the 2000s. Initially, the predominant focus was arms control, reflected in the composition of the first few Group of Governmental Experts (GGE) iterations, the forum created by the UN General Assembly (UNGA) to discuss the role of information and communication technologies (ICTs) in international security. And although experts appointed by countries from the Global South were present since the first meeting in July 2004 the debate was very much framed as a discussion among great powers. As discussions progressed, and the GGE became a process in itself, some states outside the permanent members’ group started to engage more actively. This also coincided with the progressive creation of cyber diplomacy posts and offices in foreign ministries around the world. The field was becoming more professional, as more states started to realise that these were discussions that mattered beyond the restrictive group of power politics. Countries such as South Africa, Brazil, or Kenya started to push for the discussion of issues that affected a larger group of states, with a particular focus on cyber capacity building not just at the UN-GGE but also at other multilateral and multi-stakeholder processes and conferences including the World Summit on Information Society (WSIS), Internet Corporation for Assigned Names and Numbers (ICANN), Internet Governance Forum (IGF) and the International Telecommunications Union (ITU). The creation of a new Open-Ended Working Group (OEWG) at the UN First Committee (after an acrimonious diplomatic process) had an important effect in the diversification and democratisation of the discussions, as these were now open to the whole UN membership, and non-state actors were given the opportunity to observe and participate in these sessions. Further, in 2022, the UN set up an Ad Hoc Committee (AHC) to negotiate a cybercrime convention (adopted by consensus by UNGA members in December 2024) that also enabled all UN members to participate in the negotiations. The opening up of these processes exposed many states, particularly in the Global South, to the field, and it forced them to actively engage in discussions that until recently were seen as the dominion of great powers. The African Group and the G77 were now able to actively participate in the discussions, with frequent statements and contributions. Conceptualising the Global South in cyber diplomacy As cyber diplomacy progressed, policy-maker and academics alike understood global cyber governance to be divided along three main blocs of states. The status quo defenders were led by the US and (mostly Western) like-minded states, focused on the promotion of liberal values and non-binding norms shaped by a multi-stakeholder approach and adherence to existing tenets of international law but resisted significant changes in the governance of cyberspace. A revisionist group, led by Russia and China, advocated for a new binding international treaty and multilateral governance with the objective of guaranteeing security and order rather than necessarily promoting liberal values. Given this impasse, the role and influence of a group of states termed ‘swing states’ or ‘digital deciders’ has been recognized as critical to determining the future of cyberspace, most prominently in a detailed 2018 report by the Washington DC-based think-tank New America . This grouping that largely includes emerging powers from the Global South including India, Indonesia, Brazil, Mexico and South Africa, are understood as countries that are yet to “gravitate towards either end of the spectrum, some undecided and others seeking a third path.” Given these groupings, it is worth considering how the Global South fits in with present conceptualisations of cyber diplomacy, or whether it is a grouping at all. The term ‘Global South’ has come in for some criticism given the heterogeneity of countries it describes and its geographical inaccuracy (many Global South countries are not quite in the geographical South.) To be fair, the term never aspired for terminological accuracy and was instead coined to conceptually represent a group of countries during the Vietnam dissatisfied with the political and economic exploitation from the Global North. In that regard, Global South is a “mood,” a metaphor for developing countries aiming to find their way in an increasingly contested world. The war in Ukraine only augmented these fissures as the West were confounded by the Global South’s refusal to take a stand against brazen Russian aggression in Europe. The developing world saw it differently though: in an international order long-built on racism and inequality, expecting these countries to take a stand in their “petty squabbles” while they had also carried out “similarly violent, unjust, and undemocratic interventions—from Vietnam to Iraq” was a bridge too far. The Ukraine war helped clarify the combination of behaviours that countries within the Global South exhibit to attain this strategic goal: ideological agnosticism or neutrality; selective engagement with norms and rules; and finally, multi-pronged bilateral and minilateral groupings, with equidistance from the major powers. These three approaches helped illuminate the multiple different forms of agency that each developing country exercises vis-à-vis the international order based on their own interests and quest for strategic autonomy. However, what became evident as Russians bombs started to fall on the street of Kyiv, was already visible in these states’ interactions in cyber diplomacy. First, much of the Global South has refused to take an explicit stand on the controversial fissures that the leading powers have spent much of their time debating, including whether cyberspace governance should be state-centric or driven by new rules or existing international law.  Throughout the negotiating processes at the UN OEWG and AHC, as Russia and China clashed with the United States and its allies on the text of several controversial proposals, most developing countries took an agnostic approach, neither explicitly endorsing or opposing any of these potential treaty provisions. (There are naturally some exceptions: an analysis of voting patterns suggests that Iran and North Korea have firmly pegged themselves to the Russian and Chinese side of the aisle whereas some smaller developing countries have gravitated towards the US side of the aisle.) Second, there has been selective engagement when security or developmental interests are directly impacted. For example, in its joint submission to the UN’s Global Digital Compact (GDC), the G77+China asserted the need for equitable cross-border data flows that maximize development gains. The GDC is the UN’s first comprehensive framework for global digital cooperation. Long concerned about the misuse of the multi-stakeholder model by private actors for profit at the expense of developmental interests, the G77 also highlighted the need for “multilateral and transparent approaches to digital governance to facilitate a more just, equitable and effective governance system.” Finally, countries in  the Global South have entered into multiple technology partnerships across political and ideological divides. US efforts at restricting the encroachment of Chinese hardware providers like Huawei and ZTE into the core technological periphery of several Global South countries using allegations of surveillance were sometimes rebuked, given the Five Eyes’ proclivity and reputation for also conducting similar surveillance, including on top officials. By being agnostic on controversial ideological issues, countries in the Global South have been able to maintain ties with great powers on all sides of the political spectrum and foster pragmatic technological partnerships. Will the Global South rise? The Global South’s rise as a potent force in cyber diplomacy will, however, depend on three factors. Can it maintain ideological consistency on developmental and rights concerns, including on how the internet is governed at home? Can they continue to work with multiple partners without succumbing to pressure either from Washington or Beijing? Will emerging powers in the Global South (like India, Brazil and Indonesia) bat for the interests of the larger developing world, rather than simply orchestrating global governance to service their own interests or that of the regime in power? Given that cyber diplomacy emerged and developed as the playground of great powers, analysing it through the perspective of the Global South enables us to focus on cyber governance as an issue that goes beyond (cyber)security concerns – including economic development and identity (cutting across issues of race, gender, and colonialism) – and to see the world from a perspective that goes beyond the dynamics of great power competition. Analytically, it is useful to understand how these states position themselves and justify their actions on behalf of the whole. When looking inside the box, we see some collective movement but also a desire on part of the great powers, including China to incentivise the developing world to see the world as they do. The Global South remains relevant as a construct that captures the mood of the developing world on the geopolitics of technology of cyber issues. Its “great strength” will emerge not from swinging between Washington and Beijing or being orchestrated through New Delhi or Brasilia. It will instead come through standing their ground, in service of their own security and developmental interests in cyberspace. And as they progress, it remains to be seen whether the “Global South” retains its relevance as an analytical construct or whether it will give way to other denominations that better capture the developing world’s nuances and differences vis-à-vis the international cyber order. The text of this work is licensed under  a Creative Commons CC BY-NC 4.0 license.

Defense & Security
The flags of the Russia, United States, China and are drawn on a piece of ice in the form of an Arctic iceberg against a blue sky. Conflict of interests in the Arctic, Cold War, Arctic shelf

Divided Arctic in a Divided World Order

by Rasmus Gjedssø Bertelsen

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Introduction Arctic order historically, currently, and in the future reflects the world order. The idea of ‘Arctic exceptionalism’ is not valid and is a poor guide for policy. During Cold War bipolarity, the Arctic was divided between the Soviet Arctic and the Nordic and North American Arctic. US victory and Soviet defeat in the Cold War led to US unipolarity and hegemony which was the basis for a circumpolar (including Russia) liberal (as opposed to realist) Arctic order with organizations, such as the Arctic Council, International Arctic Science Committee, University of the Arctic, Barents and Bering regional cooperation, all on liberal topics such as science, environment, Indigenous rights, people-to-people cooperation.Footnote1 US unipolarity and hegemony are slipping away to world order characteristics of continued US unipolarity and hegemony, Sino-American bipolarity in economics and S&T and multipolarity illustrated by BRICS+. Sino-US competition and US-Russia conflict to the extent of proxy-war in Ukraine reflect these changes. The Arctic, which is de facto divided between the US-led NATO-Arctic and the Russian Arctic, where Russia reaches out to the BRICS+ in diplomacy, economics, and S&T, reflects these changes to world order. There is wishful thinking in the West of returning to post-Cold War US unipolar and hegemonic ‘liberal world order’ or ‘rules-based order’ and the circumpolar liberal Arctic order with it. This wish is probably unrealistic for global trends in demography, economics, S&T, legitimacy, etc. Significant conflict can be expected between the US/West and China and Russia on developments in world order, with the Global South standing by. The Arctic is likely to remain divided between the US-led NATO Arctic and the Russian Arctic seeking engagement with the BRICS+ world for the future with extremely limited cooperation and risk of spill-over from the Ukraine War and other US-Russia-China conflicts. The Arctic in international order There are two common, but invalid, narratives about the Arctic, which are poor guides for policy: First, ‘Arctic exceptionalism’, that the Arctic was apart from international politics and allowed for West-Russia cooperation unlike elsewhere, especially between the Russian annexation of Crimea in 2014 and the Russian full-scale invasion of Ukraine in 2022. Second, a presentist discourse, where international interests in the Arctic are seen as rising in the last 15 years, driven by climate change, the Russian flag planting on the seafloor of the North Pole in 2007, and the United States Geological Survey’s assessment of oil and gas resources in 2008, north of the Arctic Circle. Rather, the Arctic has for centuries closely mirrored the international system, whether multipolar with Western colonial empires before the World Wars, bipolar Cold War between the US and the USSR, post-Cold War US unipolarity and hegemony, or the current emerging Sino-American bipolarity and multipolarity. During 2014–2022, cooperation in the Arctic was not exceptional compared to US-Russia non-proliferation cooperation, most notably with the Iran nuclear deal in 2015, or removing chemical weapons from Syria. There was extensive US-Europe-Russia and wider collaboration around the International Space Station. There was extensive energy trade and investment between Russia and Europe, most notably with the Nord Stream 1 and 2 pipelines under the Baltic Sea. The bipolar Cold War Arctic in the bipolar Cold War order Bipolarity with two superpowers standing out from all other great powers due to their demographic, economic, science and technology, military, and ideological weight and global claims, the US and the USSR, shaped the the Cold War order. Bipolar logic shaped the international order. John Mearsheimer explains well the structural logic of a nuclear-armed bipolar superpower security competition, and he points out how each superpower formed ‘bounded orders’ of allies and clients to discipline them and mobilize their resources. These bounded orders were the West for the US with its institutions, and the East Bloc for the USSR.Footnote2 This bipolar logic was also clear in the Arctic, divided between the Nordic and North American Arctic of the West and the Soviet Arctic by the Iron Curtain in Europe and the Ice Curtain in the Bering Strait. Circumpolar Arctic cooperation was limited to the Polar Bear Treaty of 1973 between the USSR, Norway, Kingdom of Denmark, Canada, and the US, Norwegian Soviet joint fisheries management in the Barents Sea, and some Bering Strait cooperation. The Arctic was exceptionally militarized during the Cold War driven by the mutual nuclear deterrence between the US and the USSR, where the Arctic played a central role for geostrategic and technological reasons. The Arctic was the shortest flight path for bombers and missiles, and sea ice offered cover for nuclear ballistic submarines. This exceptional militarization of the Arctic harmed the human security of Arctic local and indigenous communities through forced displacement, security service surveillance, and pollution, including notable nuclear accidents, as the 1968 B52 bomber crash off Northwest Greenland with four H-bombs causing extensive radioactive contamination of much Soviet nuclear material in and around the Kola Peninsula, including sunken submarines with nuclear fuel or weapons on board.Footnote3 Circumpolar liberal Arctic order under US unipolarity The Cold War ended with US victory and Soviet defeat and dissolution, also caused by the US pressuring the USSR into a strategic nuclear arms race, that the Soviet economy could not support. US Navy operations near the Soviet Northern Fleet nuclear bastion around the Kola Peninsula were an important part of this pressure.Footnote4 The Arctic was also part of Mikhail Gorbachev’s attempt to save the USSR by reform and lowering external tension. Gorbachev called the Arctic as a zone of peace, environmental protection and scientific collaboration in his 1987 Murmansk speech, in contrast to being at the heart of a strategic nuclear arms race with the US, which the USSR could not sustain. Gorbachev’s reforms failed to avert the dissolution of the USSR and deep socio-economic, public health, and law and order crisis in Russian society during the 1990s. The Russian State withdrew to a significant extent from its Arctic, leaving military facilities and society behind. Sino-American bipolarity comes to the Arctic The relative distribution of comprehensive material and immaterial power of the strongest States shapes international order. States stay the predominant actors since the emergence of a state system, not denying powerful non-State actors historically and today. The US unipolarity after the Cold War was an exceptional time of international history and not the ‘End of History’ as believed by some quarters in the West (Fukuyama). History is returning to normal with the return of major centres of economic output and science and technology outside the West. Ironically, US unipolarity laid the foundation for the ‘Return of history’, rather than the ‘End of History’. Since the 1990s, the world experienced globalization with economic, science and technology, and cultural integration. The US as the sole superpower provided public goods and facilitated and coordinated many of these economic, scientific, and technological, and cultural flows. Globalization undermined US unipolarity, facilitating the faster relative growth of non-Western States. China’s export-oriented growth, returning it to its historical position as one of the world’s largest economies is the most important dimension for changes to world order. In parallel, other emerging markets have grown adding multipolar dimensions to international order. International Relations theory serves to think about how to respond to the return of China. About 20–25 years ago, Professor Joseph S. Nye (Harvard University) and Professor John Mearsheimer (University of Chicago) articulated two major approaches with coherent theoretical and strategic visions for the Sino-American relationship. Nye, as a liberal institutionalist scholar and policymaker in the Bill Clinton Administration, presented a vision of ‘integrate, but hedge’. China integrated in the US-led world economy as member state of the World Trade Organization, while the US hedged against the rise of China by reinforcing its alliance with Japan.Footnote5 There were strong US and Western liberal expectations of Chinese economic growth and openness leading to political openness and reform. These expectations proved to be belied and ethnocentric. Mearsheimer, in line with his offensive realist theory, clearly outlined how the US had to keep China from becoming a regional hegemon in East Asia through a containment strategy.Footnote6 The US’ China strategy has shifted from the Nye perspective to the Mearsheimer perspective, while Mearsheimer himself is ostracized for his valid, but politically unacceptable, analysis of the Ukraine War. Mearsheimer explains how Sino-American bipolarity works with realist great power State security competition, and how competing great powers form their ‘bounded orders’ of allies and clients to discipline and mobilize these.Footnote7 The US is shaping a NATO+ order of the NATO member states and Australia, New Zealand, Japan, and South Korea. The US is increasingly engaging in trade and technology wars with China to slow down its growth rate, clearly denying its access to fundamental technologies of future knowledge-based economies. A realist focus on relative gains explains US policy to reduce China’s growth rate. China has a population more than three times that of the US with an absolute economy approaching the US economy. The US cannot allow China to catch up relatively with it, as that would imply a much larger Chinese economy than that of the US. Liberals (politically and theoretically) would ascribe the US policy to different domestic political systems, but the logic of anarchy points out how domestic political systems are of secondary concern, and empirically the US firmly bypassed and disciplined the previous Anglo-Saxon superpower, Britain. US-India relations can be expected to deteriorate with India’s socio-economic development, where India has a much younger population than China with great economic growth potential. China predicted the US abandoning its own open and globalized international economic policy out of concern for China’s relative rise to the US. China pursued a domestic and international economic policy much less dependent on US benevolence. In the domestic sphere, China pursued an economy based on domestic demand. Externally, China built up a parallel international economic and science and technology system with the Belt and Road Initiative with the Asian Infrastructure Investment Bank. Other bodies, such as the Shanghai Cooperation Organization in security reflect parallel orders and institutions to the US-led Western institutions. Sino-American bipolarity also became clear in the Arctic about 10–15 years ago. China started to appear as a diplomatic, economic, science and technology actor in the Arctic. Western surprise and consternation to this development reflects the great difficulties many Westerners have in facing a world, where the Rest takes an interest in the West, and not only the West taking an interest in the Rest as during centuries of imperialism and colonialism. It should not be surprising that China as one of the world’s two largest national economies and science and technology systems (with the US) has interests in the Arctic, or anywhere else in the world. The US is globally present in politics, defence, diplomacy, economics, science and technology, culture, etc. The unfortunate Chinese term of ‘near-Arctic State’ to legitimize Chinese involvement in the Arctic drew much Western ridicule and opposition. In comparison, the US and the West seem to be ‘near-everywhere’ States. One place where the Sino-American bipolar logic appeared soon and clearly has been the Kingdom of Denmark with the North Atlantic and Arctic overseas autonomies of the Faroe Islands and Greenland. The US applies pressure on the Kingdom of Denmark to exclude Chinese investment, science and technology, in line with Mearsheimer’s argument of a superpower building bounded orders to mobilize and discipline allies and clients in security competition with a competing great or superpower. The Faroe Islands are located between Iceland, Norway, and Scotland. They are centrally placed in the Greenland-Iceland-UK Gap controlling North-South access and blocking the Soviet-Russian Northern Fleet going south for NATO or the US and NATO navies going north for USSR/Russia. The Faroe Islands are becoming increasingly independent from Denmark. Huawei has long been a partner for the Faroese telecom company, which planned to continue with Huawei for 5G. This partnership came under increasing scrutiny from Danish and US sides. The Chinese ambassador to Copenhagen during a visit to the Faroe Islands linked the Faroe Islands choosing Huawei with prospects for a Sino-Faroese free trade agreement (the Faroe Islands are outside the EU and pursue an independent trade policy).Footnote8 The US ambassador to Copenhagen publicly spoke strongly against the Faroe Islands collaborating with Huawei for 5 G.Footnote9 Greenland is geographically North American (remember the Monroe Doctrine), crucial to US (North American) homeland defence, and pursuing independence from the Kingdom of Denmark. Greenland and China have for some time eyed each other for investment and science and technology opportunities. Greenlandic independence primarily rests on economic independence from Denmark and human capital. The economic independence should be through, among other domains, mining, where China and Chinese companies were considered as very important likely investors. Copenhagen regarded Sino-Greenlandic mutual interest with great suspicion for a long time, which was evident from the report on Greenlandic mining from 2014.Footnote10 In 2014, the Royal Danish Navy abandoned Grønnedal, a small, remote old naval facility, established by the US during the Second World War, which was put up for sale. A Chinese mining company showed interest in the facility as a logistics hub for future operations in Greenland. The Danish government promptly took the facility off the market maintaining a token naval presence.Footnote11 Developing Greenlandic tourism requires upgrading the airport infrastructure, which is an enormous project for a nation of 57,000 on a 2 M km2 island. One of the finalists to an international tender was the China Construction Communication Company (4C), which might also have provided financing.Footnote12 The Danish government convinced the Greenlandic government to accept a Danish financing (with a Danish stake) of the renovated and new airports against choosing a Danish construction company.Footnote13 The Greenlandic government was reshaped over this intervention with a coalition party leaving in protest over accepting such Danish interference in Greenlandic affairs. In 2017, China publicly presented its interest in a research station in Greenland, including a satellite ground station, which the Government of Greenland might have been positive towards.Footnote14 This idea has never materialized, first probably delayed by the COVID-19 pandemic, but Denmark and the US would never accept a Chinese research station and/or satellite station in Greenland. The US government has made its pressure on the Danish government public, through former Secretary of Defense, General Jim Mattis.Footnote15 China and Iceland spearheaded Sino-Nordic Arctic research cooperation from the official visit of Chinese premier Wen Jiabao to Iceland in 2012. In 2013, the China Nordic Arctic Research Center was founded, a virtual centre of Chinese and Nordic institutions hosted by the Polar Research Institute of China in Shanghai. CNARC has hosted an annual symposium between China and a Nordic country as well as researcher exchange. Today, Sweden has withdrawn from CNARC, and Denmark does not participate, as the participating Nordic Institute of Asian Studies at the University of Copenhagen has been closed. PRIC and RANNÍS (The Icelandic Center for Research, equivalent to Research Council) held the groundbreaking ceremony for the construction of the China-Iceland Aurora Observatory, now China Iceland Arctic Observatory, at Kárhóll, Northeast Iceland, in June 2014, which I attended. The Observatory opened formally—although unfinished—in October 2018. This collaboration had been hampered by the COVID-19 pandemic and negligence from central authorities and research institutions in the capital, Reykjavik. Today, Iceland is under pressure from the US, including a recent visit by US Congressional staffers, to close CIAO.Footnote16 US-Russia Eastern European security competition divides the Arctic US-Russia security competition, especially in Eastern Europe, became increasingly clear from around 2007–2008. In 2007, Russian President Vladimir Putin delivered a speech at the Munich Security Conference, where he unsurprisingly denounced US unipolarity. Russia had rejected US unipolarity and called for multipolarity since the Primakov Doctrine of the 1990s calling for Russia, China, and India to balance the US. In spring 2008, at the initiative of the US—and with French and German reservations—the NATO Bucharest summit invited Georgia and Ukraine to become member states. In the autumn, fighting broke out between Georgia and Russian forces in the separatist enclaves of Abkhazia and South Ossetia leading to Georgia’s defeat. In autumn 2013, the EU proposed an agreement to Ukraine, which forced Ukraine to choose between Russia and the EU. The Ukrainian President rejected the EU’s proposal, leading to popular protests met with government violence and eventually the President fleeing the country. Russia intervened annexing Crimea and supporting an insurgency in the Donbas.Footnote17 In December 2021, Russia proposed a treaty to the US blocking former Soviet Republics from joining NATO and rolling back NATO troops and equipment in Central and Eastern Europe, which was rejected by the US and allies in January 2022. On 24 February 2022, Russia launched a full-scale invasion of Ukraine, which had led to a war of attrition between Russia and Ukraine. The West extends wide-ranging political, military, economic, and further support to Ukraine and tries to isolate Russia as much as possible. The Rest of the world follows Western policy of isolating Russia to a very limited extent. The Russian annexation of Crimea affected the Arctic in limited ways. The West stopped military dialogues with Russia in the Arctic Security Forces Roundtable and Arctic Chiefs of Defense Forum. The West imposed sanctions on Russian Arctic energy projects, as the US $27 billion Yamal LNG project, which initially had Russian Novatek (60 per cent), French Total (20 per cent), and China National Petroleum Cooperation (20 per cent) ownership. Sanctions forced Novatek to sell 9.9 per cent to the Chinese government’s Silk Road Fund and rely on Chinese bank funding. Russia responded to these sanctions with counter sanctions on Western food exports to Russia, which also affected some Arctic seafood export to Russia. Russia accepted Faroese salmon exports, which led to a boom in Faroese economy. In 2014, there was some protests in the Arctic Council from the Chair, Canada. Otherwise, Arctic Council and other scientific, people-to-people, cooperation continued between Russia and the seven other Arctic States. For Northern Norway, extensive regional cooperation in the Barents region continued. The Russian full-scale invasion of Ukraine led to an almost complete Western cessation of Arctic collaboration with Russia. The other seven Arctic countries refused to collaborate with Russia in the Arctic Council, chaired by Russia 2021–2023. The Seven—now all NATO member states—Arctic Council member states have since backed down significantly. The Arctic Council was always more important to them than to Russia, suggesting that this Western brinkmanship was poorly thought through. There are extensive Western sanctions against the Russian economy, including against Russian Arctic energy projects, which were a key basis for developing the Russian Arctic. Russia had sought to develop a Europe-Russia-East Asia energy system with Russian Arctic oil and gas being exported both West to Europe and East to East Asia and with balanced Western and East Asian investments.Footnote18 The West has almost completely cut science and technology relations with Russia, also in the Arctic. The rare exceptions to continued Arctic science collaboration between West and Russia are for instance, the Norway-Russia Barents Sea Fisheries Commission because Norway also depends on this collaboration. The US continues more academic collaboration with Russia than European countries allow themselves; for instance, receiving Russian Fulbright professors. Norway pursued an extensive regional cooperation policy with Russia, Finland, and Sweden in the Barents Region since 1993 with much support for cross-border people-to-people exchange for youth, in education, academia, culture, environment, business development, and further. This collaboration built extensive insight, experience, networks, and access in Russia at North Norwegian institutions, as UiT The Arctic University of Norway, UNN The University Hospital of Northern Norway, the Norwegian Polar Institute, the Arctic Frontiers Conference, businesses such as Akvaplan-Niva marine environmental consultancy, and in academia, civil society, education, and government. The border town of Kirkenes depended for about a third of its economic turnover on trade with Russia. These connections are now almost completely cut by Norwegian government policy. Russian society and politics did become much more closed and authoritarian during this period, but that was for internal political reasons and not directed against Norway. Personally, I had successful high-level academic cooperation with some of the key Russian academic institutions funded by Norwegian public funds until they were forbidden by Norwegian government policy after the Russian invasion of Ukraine. My last personal visit to Moscow was in December 2019, and I was planning to visit with a sizeable group of Norwegian faculty and PhD candidates in April 2020, postponed due to the COVID-19 pandemic. The rapid division of world order in a NATO+ and a BRICS++ world The world is separating into a NATO+ grouping of NATO countries and Australia, New Zealand, Japan, and South Korea, under clear US leadership, and the Rest. The Rest, I call BRICS++ for the BRICS+ grouping and many other countries. This separation is clear through demography, economy, and science and technology. Humanity is about 8 billion people, compared to the West, which is about 1 billion, making it a small minority. Humanity is expected to grow to 10 billion, where the West will remain at about 1 billion, a shrinking small minority. The dominance of the West has rested on economic development and science and technology, translated into military force, with a shrinking demographic share of the world economy, scientific and technological development and relative power shifts from the West to the Rest. Legitimacy and credibility divisions are also clearly visible between the NATO+ and the BRICS++ worlds concerning the war in Ukraine, where the West is astonished by its own isolation. To great surprise, the Rest of the world have not followed the West’s attempts to isolate Russia diplomatically and economically. This rejection of the West’s position was clear from the very first UN Security Council debate on the Russian invasion of Ukraine on 24 February 2022. Russian veto and Chinese and Indian abstentions were not surprising, but the abstention by the United Arab Emirates was remarkable considering the close security and other partnerships between the GCC countries and the US and historically the UK. The speech during the debate on 21 February 2022, a few days prior, by the Kenyan ambassador to the Security Council, condemning Russia’s recognition of breakaway regions but reminding that other UNSC permanent members had also violated international law, showed the lack of Western credibility and legitimacy on the issue.Footnote19 Western credibility and legitimacy have eroded further by supporting Israel’s genocide in Gaza since the 7 October 2023 Hamas attack on Israel. The Division of the Arctic in a NATO Arctic and Russian BRICS++ Arctic. The effects of world order on the Arctic are clear, applying the analytical lenses of unipolar, bipolar, and multipolar traits of world order to the Arctic. The world is increasingly becoming Sino-American bipolar, where the US seeks to maintain unipolarity through a global containment strategy of China. This struggle is also evident in the Arctic; for instance, US pressure on the Kingdom of Denmark to exclude Chinese investment, science and technology in the Faroe Islands and Greenland. The US keeps up an ever-stronger anti-Chinese Arctic discourse from Secretary of State Mike Pompeo’s 2019 speech in Rovaniemi, Finland, to US Senator Lisa Murkowski at the Arctic Circle Assembly in Reykjavik in 2024. Russia has opposed US unipolarity since the 1990s, seeking multipolarity. The conflict between US and Russian multipolarity ultimately escalated via the 2014 annexation of Crimea, the 2022 invasion of Ukraine and the proxy war in Ukraine. This conflict has led to an almost complete division of the Arctic into NATO-Arctic (collaborating with the wider NATO+ world and further) and the Russian Arctic. Russia reaches out all it can diplomatically, economically, and in science and technology to the BRICS++ world, especially China and India. The Rest of the World seems restrained from pursuing Russian Arctic opportunities by the risk of US and Western secondary sanctions and other NATO Arctic pushbacks. Conclusion: looking forward for world and Arctic order The world is—as usual for international history—marked by the struggle over the world order among the strongest State actors. This struggle was forgotten especially by European observers during the post-Cold War era, with the illusion of End of History and confounding globalization and modernization with Westernization. Instead, we have had the Return of History and the return of historically very large non-Western economic, science and technology actors as China, followed by others. The current struggle over the world order also shapes the Arctic, as was historically clear, especially during the Second World War and the Cold War. The US is determined to prolong post-Cold War unipolar dominance expressed as ‘rules-based order’, where the US defines the rules, to whom, and when they apply. Europe has found an apparently comfortable and completely dependent position in this US-led order. The Rest of the World less so, with China and Russia explicitly rejecting this US-led order. The conflict over world order between the US and its bounded order in the NATO+ world in Europe, Oceania, and East Asia and the Rest of the World, can only be expected to escalate. The US must either stop Chinese economic, science and technology development (and later other peer competitors), or demographics, economy, science and technology will lead to a more bipolar and multipolar world. Europe by its dependence on the US is forced to follow this US strategy. The war in Ukraine can lead to a frozen conflict, where the overall Russia-West relationship remains highly conflictual, including in the Arctic. Ukrainian defeat or a negotiated settlement with a neutralized Ukraine and cessation of territory to Russia will also probably lead to a decadal severance of economic, science and technology, people-to-people ties between Russia and the West, including in the Arctic. A Russian defeat is unlikely because of difference in Russian and Ukrainian manpower and resources. China is unlikely to allow Russia to succumb to the US, which would put defeated Russia on China’s Northern frontier in China’s own conflict with the US. All in all, world order seems highly conflictual and with increased separation between the NATO+ and the BRICS++ world, which will only bring humanity more conflict and less economic development and growth, unlike the age of post-Cold War globalization. This division will be replicated in the Arctic. Disclosure statementNo potential conflict of interest was reported by the author(s).Additional informationNotes on contributorsRasmus Gjedssø Bertelsen is Professor at UiT The Arctic University of Norway. Views expressed are personal. Notes 1. Rasmus Gjedssø Bertelsen, ‘Unipolarity and Order in the Arctic’. Nina Græger, Bertel Heurlin, Ole Wæver, Anders Wivel, (Eds.), Polarity in International Relations. Governance, Security and Development, Palgrave Macmillan, Cham, 2022 at https://doi.org/10.1007/978-3-031-05505-8_16. 2. John J. Mearsheimer, ‘Bound to Fail: The Rise and Fall of the Liberal International Order’, International Security, 43 (4), 2019, pp. 7–50 at https://doi.org/10.1162/isec_a_00342 3. George Lindsey, ‘Strategic Stability in the Arctic’, Adelphi Papers 241, International Institute for Strategic Studies, 1989. 4. Steven E. Miller, ‘The Return of the Strategic Arctic’, in The Arctic Yearbook, 2023 at https://arcticyearbook.com/images/yearbook/2022/Commentaries/6C_AY2022_Miller.pdf. 5. Joseph S. Nye, ‘The Challenge of China’, in Stephen Van Evera (Ed.) How to Make America Safe: New Policies for National Security, The Tobin Project, Cambridge, MA 2006 at https://tobinproject.org/sites/default/files/assets/Make_America_Safe_The_Challenge_Of_China.pdf. 6. John J. Mearsheimer, ‘The Rise of China Will Not Be Peaceful at All’, The Australian, 18 November 2005 at https://www.mearsheimer.com/wp-content/uploads/2019/06/The-Australian-November-18-2005.pdf. 7. John J. Mearsheimer, ‘Bound to Fail: The Rise and Fall of the Liberal International Order’, International Security, 43 (4), pp. 7–50, 2019 athttps://doi.org/10.1162/isec_a_00342. 8. Thomas Foght, ‘Hemmelig lydoptagelse: Kina pressede Færøerne til at vælge Huawei’ [Secret Sound Recording: China Pressured the Faroe Islands to Choose Huawei]. Danmarks Radio, 2019 at https://www.dr.dk/nyheder/indland/hemmelig-lydoptagelse-kina-pressede-faeroeerne-til-vaelge-huawei. 9. Adam Satariano, ‘At the Edge of the World, a New Battleground for the US and China’, New York Times, 2019 at https://www.nytimes.com/2019/12/20/technology/faroe-islands-huawei-china-us.html. 10. The Committee for Greenlandic Mineral Resources to the Benefit of Society, ‘To the Benefit of Greenland’. Ilisimatusarfik-University of Greenland; University of Copenhagen, 2014 at https://vbn.aau.dk/ws/files/208241864/To_the_benefit_of_Greenland.pdf. 11. Martin Breum, ‘Analyse: Stoppede Danmarks statsminister kinesisk opkøb i Grønland?’ [Analysis: Did the Danish Prime Minister Stop Chinese Acquisition in Greenland?]. High North News, 2018 at https://www.highnorthnews.com/nb/analyse-stoppede-danmarks-statsminister-kinesisk-opkob-i-gronland. 12. Teis Jensen, ‘Greenland shortlists Chinese company for airport construction despite Denmark’s concerns’, Reuters, 2018 at https://www.reuters.com/article/world/greenland-shortlists-chinese-company-for-airport-construction-despite-denmarks-idUSKBN1H32XG/. 13. Statsministeriet, ‘Aftale mellem regeringen og Naalakkersuisut om dansk engagement i lufthavnsprojektet i Grønland og styrket erhvervssamarbejde mellem Danmark og Grønland’ [Agreement Between the [Danish] Government and Naalakkersuisut [Government of Greenland] on Danish Involvement in the Airport Project in Greenland and Enhanced Business Collaboration Between Denmark and Greenland] Statsministeriet. Formandens Departement, 2018 at https://www.stm.dk/media/8148/10-09-2018_aftale_mellem_regeringen_og_naalakkersuisut.pdf. 14. Martin Breum, ‘Kina vil bygge kontroversiel forskningsstation i Grønland’. [China Wants to Build Controversial Research Station in Greenland], 2017 at https://www.information.dk/udland/2017/10/kina-bygge-kontroversiel-forskningsstation-groenland. 15. Damian Paletta and Itkowitz Colby, ‘Trump Aides Look into US Purchasing Greenland after Directives from President’. The Washington Post, 2019 at https://www.washingtonpost.com/business/2019/08/16/america-first-greenland-second-is-trumps-latest-white-house-directive/. 16. ‘Letter to Anthony Blinking and Lloyd Austin’, Select Committee on the Chinese Communist Party, United States Congress, 2017 at https://democrats-selectcommitteeontheccp.house.gov/sites/evo-subsites/democrats-selectcommitteeontheccp.house.gov/files/evo-media-document/10.16.24_PRC%20dual%20use%20research%20in%20the%20Arctic__.pdf. 17. John J. Mearsheimer, ‘Why the Ukraine Crisis is the West’s Fault: The Liberal Delusions That Provoked Putin’, Foreign Affairs, September/October, 2014 at https://www.mearsheimer.com/wp-content/uploads/2019/06/Why-the-Ukraine-Crisis-Is.pdf. 18. Mariia Kobzeva and Rasmus Gjedssø Bertelsen, ‘European-Russian-Chinese Arctic Energy System’,in Xing Li (Ed) China-EU Relations in a New Era of Global Transformation, London: Routledge, London, 2021, 22p. 19. Martin Kimani, ‘Statement by Amb. Martin Kimani, during the Security Council Urgent Meeting on the Situation in Ukraine’, The Permanent Mission of the Republic of Kenya, United Nations Security Council, February 2022 at https://www.un.int/kenya/sites/www.un.int/files/Kenya/kenya_statement_during_urgent_meeting_on_on_ukraine_21_february_2022_at_2100.pdf.

Energy & Economics
Alternative or renewable energy financing program, financial concept : Green eco-friendly or sustainable energy symbols atop five coin stacks e.g a light bulb, a rechargeable battery, solar cell panel

The Success of Climate Change Performance Index in the Development of Environmental Investments: E-7 Countries

by Başak Özarslan Doğan

Abstract Climate change is considered to be one of the biggest problems acknowledged globally today. Therefore, the causes of climate change and solutions to this problem are frequently investigated. For this reason, the purpose of this study is to empirically examine whether the ‘Climate Change Performance Index’ (CCPI) is successful in increasing environmental investments for E-7 countries with the data for the period of 2008–2023. To achieve this aim, the Parks-Kmenta estimator was used as the econometric method in the study. The study findings provide strong evidence that increases in the climate change performance support environmental investments. High climate change performance directs governments and investors toward investing in this area; therefore, environmental investments tend to increase. The study also examined the effects of population growth, real GDP and inflation on environmental investments. Accordingly, it has been concluded that population growth and inflation negatively affect environmental investments, while GDP positively affects environmental investments. 1. Introduction There is a broad consensus that the main cause of climate change is human-based greenhouse gas emissions from non-renewable (i.e., fossil) fuels and improper land use. Accordingly, climate change may have serious negative consequences as well as significant macroeconomic outcomes. For example, an upward trend of temperatures, the rising sea levels, and extreme weather conditions can seriously disrupt the output and productivity (IMF, 2008a; Eyraud et al., 2013). Due to the global climate change, many countries today see environmental investments, especially renewable energy investments, as an important part of their growth strategies. Until recent years, the most important priority of many countries was an improvement in the economic growth figures. Still, the global climate change and the emergence of many related problems are now directing countries toward implementing policies which would be more sensitive to the environment and would ensure sustainable growth rather than just increase the growth figures. (Baştürk, 2024: 327). The orientation of various countries to these policies has led to an increase in environmental investments on a global scale. A relative rise of the share of environmental investments worldwide is not only a medium-term climate goal. It also brings many new concepts to the agenda, such as an increasing energy security, reduction of the negative impact of air pollution on health, and the possibility of finding new growth resources (Accenture, 2011; McKinsey, 2009; (OECD), 2011; PriceWaterhouseCoopers, 2008; Eyraud et al., 2013). Today, environmental investments have a significant share in energy and electricity production. According to the World Energy Outlook (2023), investments in environmentally friendly energies have increased by approximately 40% since 2020. The effort to reduce emissions is the key reason for this increase, but it is not the only reason. Economic reasons are also quite strong in preferring environmental energy technologies. For example, energy security is also fundamentally important in the increase in environmental investments. Especially in fuel-importing countries, industrial plans and the necessity to spread clean (i.e., renewable) energy jobs throughout the country are important factors (IEA WEO, 2023).  In economic literature, environmental investments are generally represented by renewable energy investments. Accordingly, Figure 1 below presents global renewable energy electricity production for 2000–2020. According to the data obtained from IRENA (2024) and Figure 1, the total electricity production has increased by approximately 2.4% since 2011, with renewable energy sources contributing 6.1% to this rate, while non-renewable energy sources contributed 1.3%. In 2022 alone, renewable electricity grew by 7.2% compared to 2021. Solar and wind energy provided the largest growth in renewable electricity since 2010, which reached 11.7% of the global electricity mix in 2022.   Figure 2 below presents renewable energy investments by technology between 2013 and 2022. As shown in Figure 2, photovoltaic solar. and terrestrial wind categories are dominating, accounting for 46% and 32% of the global renewable energy investment, respectively, during 2013–2022.   Economic growth supported by environmental investments is impacted by the type and number of energy used to increase the national output. Thus, both the environmental friendliness of the energy used and the rise in energy efficiency is bound to reduce carbon emissions related to energy use and encourage economic growth (Hussain and Dogan, 2021). In this context, in order to minimize emissions and ensure sustainable economic growth, renewable energy sources should be used instead of fossil resources in energy use. Increasing environmental investments on a global scale, especially a boost in renewable energy investments, is seen as a more comprehensive solution to the current global growth-development and environmental degradation balance. In this context, as a result of the latest Conference of the Parties held in Paris, namely, COP21, it was envisaged to make an agreement covering the processes after 2020, which is accepted as the end year of the Kyoto Protocol. On December 12, 2015, the Paris Agreement was adopted unanimously by the countries that are parties to the UN Framework Convention on Climate Change (Kaya, 2020). As a result of the Paris Agreement and the reports delivered by the Intergovernmental Climate Change Panels, international efforts to adapt to the action to combat climate change and global warming have increased, and awareness has been raised in this area (Irfan et al., 2021; Feng et al., 2022; Anser et al., 2020; Zhang et al., 2021; Huang et al., 2021; Fang, 2023). The rise in the demand for low-carbon energy sources in economies has been caused by environmental investments such as renewable energy investments. The countries that are party to the Paris Agreement, commit to the way to achieve efficient energy systems through the spread of renewable energy technologies throughout the country (Bashir et al., 2021; Fang, 2023). This study empirically examines the impact of the climate change performance on increasing environmental investments for E-7 countries. The climate change performance is expressed by the ‘Climate Change Performance Index’ (CCPI) developed by the German environmental and developmental organization Germanwatch. The index evaluates the climate protection performance of 63 developed and developing countries and the EU annually, and compares the data. Within this framework, CCPI seeks to increase clarity in international climate policies and practices, and enables a comparison of the progress achieved by various countries in their climate protection struggle. CCPI evaluates the performance of each country in four main categories: GHG Emissions (40% overall ranking), Renewable Energy (20%), Energy Use (20%), and Climate Policy (20%). In calculating this index, each category of GHG emissions, renewable energy, and energy use is measured by using four indicators. These are the Current Level, the Past Trend, the Current Level Well Below 2°C Compliance, and the Countries’ Well Below 2°C Compliance with the 2030 Target. The climate policy category is evaluated annually with a comprehensive survey in two ways: as the National Climate Policy and the International Climate Policy (https://ccpi.org/methodology/).  Figure 3 below shows the world map presenting the total results of the countries evaluated in CCPI 2025 and their overall performance, including the four main categories outlined above.   As it can be seen from Figure 3, no country appears strong enough to receive a ‘very high’ score across all categories. Moreover, although Denmark continues to be the highest-ranking country in the index, but it still does not perform well enough to receive a ‘very high’ score overall. On the other hand, India, Germany, the EU, and the G20 countries/regions will be among the highest-performing countries/regions in the 2024 index. When we look at Canada, South Korea, and Saudi Arabia, they are the worst-performing countries in the G20. On the other hand, it can be said that Türkiye, Poland, the USA, and Japan are the worst-performing countries in the overall ranking. The climate change performance index is an important criterion because it indicates whether the change and progress in combating climate change is occurring across all countries at an important level. The index is important in answering various questions for countries under discussion. These questions are expressed below:  • In which stage are the countries in the categories in which the index is calculated?• What policies should countries follow after seeing the stages in which they are in each category? • Which countries are setting an example by truly combating climate change? These questions also constitute the motivation for this study. The sample group for the study was selected as E-7 countries, which are called the Emerging Economies; this list consists of Türkiye, China, India, Russia, Brazil, Mexico, and Indonesia. The reason for selecting these particular countries is that they are undergoing a rapid development and transformation process, and are also believed to be influential in the future with their increasing share in the world trade volume, huge populations, and advances in technology. Besides that, when the relevant literature has been examined, studies that empirically address the relative ranking of the climate change performance appear to be quite limited. In particular, there are almost no studies evaluating the climate change performance index for the sample group considered. Therefore, it is thought that this study will be of great importance in filling this gap in the literature. The following section of the study, which aims to empirically examine whether the climate change performance is effective in developing environmental investments in E-7 countries, includes national and international selected literature review on the subject. Then, the model of the study and the variables chosen in this model are introduced. Then, the findings obtained in the study are shared, and the study ends with discussion and policy proposal. 2. Literature Review 2.1. Studies on environmental investment  The excessive use of fossil-based energy sources, considered non-renewable and dirty energy, along with industrialization, constitutes a large part of carbon emissions and is regarded as the main reason of climate change. Thus, countries have turned to renewable energy investments with the objective to minimize the reaction of climate change and global warming, by introducing technologies which are considered more environmentally friendly and cleaner. Global energy investments are estimated to exceed 3 trillion US dollars by the end of 2024, and 2 trillion US dollars of this amount will go to clean and environmentally friendly energy base technologies and infrastructure. Investment in environmentally friendly energy has been gaining speed since 2020, and the total expense on renewable energy, networks, and storage now represents a higher figure than the total spending on oil, gas, and coal (IEA, 2024). When the energy economics literature is examined, since environmental investments are mostly represented by renewable energy investments, renewable energy investments studies and studies in related fields shall be discussed in this study section. One of the important studies in this field is the work of Eyraud et al. (2013). In the study, the authors analyzed the determinants of environmental and green (clean) investments for 35 developed and developing countries. Accordingly, they stated in the study that environmental investment has become the main driving force of the energy sector, and China has generally driven its rapid growth in recent years. In addition, in terms of the econometric results of the study, it has been found that environmental investments are supported by economic growth, a solid financial system suitable for lower interest rates, and higher fuel prices. Fang (2023) examined the relationship between investments in the renewable energy sector, the economic complexity index, green technological innovation, industrial structure growth, and carbon emissions in 32 provinces in China for the period of 2005–2019 by using the GMM method. Based on the study results, the economic complexity index causes an increase in China’s carbon dioxide levels. On the contrary, all of the following – the square of the economic complexity index, investments in clean energy, green technical innovation, and the industrial structure – were found to help decrease carbon dioxide emissions. Another important study in this field is the work of Masini and Menichetti (2013). The authors examined the non-financial sources of renewable energy investments in their study. Accordingly, the study results show that knowledge and confidence in technological competence positively impact renewable energy investments. In addition, trust in policy measures only impacts PV (Photovoltaic) and hydropower investments, whereas institutional pressure negatively impacts renewable energy investments. Finally, the study stated that experienced investors are more likely to fund innovations in renewable energy. One of the important studies on renewable energy investments is the work of Ozorhon et al. (2018). To support and facilitate the decision-making process in renewable energy investments, the authors determined the main criteria affecting investors’ decisions by reviewing the literature and examining sector-level practices. According to the findings, economic criteria, like policies and regulations, funds availability, and investment costs were the most important factors in the decision-making process for renewable energy investments. Xu et al. (2024) examined the relationship between the renewable energy investments and the renewable energy development with a threshold value analysis for China. According to the results, impact of the clean (renewable) energy investment on renewable energy development has a significant threshold value, and the general relation between them is a ‘V’ type non-linear relation. At this point, the study suggests that the state should keep spending in the segment of investments in clean energy, increase the financial proficiency, and ensure an efficient financial infrastructure for clean energy in China. 2.2. Studies on Climate Change and their Impact on Economic Variables  The widespread use of fossil-based energy sources, considered dirty energy, continues to create a negative externality in carbon emissions despite the globally implemented policies like the Kyoto Protocol and the Paris Agreement (Rezai et al., 2021). The economic literature on climate change focuses particularly on the adverse effect of climate change on the economy. One of the important studies in this field is the study of Fan et al. (2019). In their study, the authors focused on the impact of climate change on the energy sector for 30 provinces in China and conducted their research with the help of a fixed-effect regression feedback model. As a result of the study, it was found that hot and low-temperature days positively affected the electricity demand. On the other hand, Singh et al. (2022) examined the effects of climate change on agricultural sustainability in India with data from 1990–2017. On the grounds of the study, it was found that India’s agricultural sector was negatively impacted by the climate change. In this regard, it is stated that India needs to take powerful climate policy action so that to reduce the adverse effect of the climate change and increase its sustainable agricultural development. One of the important studies in this field is the study of Gallego-Alvarez et al. (2013). This study investigated how the climate change affects the financial performance with a sample of 855 international companies operating in sectors with high greenhouse gas/ CO2 emissions from 2006–2009. The results reveal that the relationship between the environmental and financial performance is higher in times of economic crisis triggered by climate crisis. In other words, these results show that companies should continue investing in sustainable projects in order to achieve higher profits. Kahn et al. (2021) examined the long-term macroeconomic impact of the climate change by using a panel data set consisting of 174 countries between 1960 and 2014. According to the findings, the amount of output per capita is negatively affected by temperature changes, but no statistically significant effect is observed for changes in precipitation. In addition, according to the study’s results, the main effects of temperature shocks also vary across income groups. Alagidede et al. (2015) examined the effect of climate change on sustainable economic growth in the Sub-Saharan Africa region in their study. The study stated that the relationship between the real GDP and the climate change is not linear. In addition, Milliner and Dietz (2011) investigated the long-term economic consequences of the climate change. Accordingly, as the economy develops over time, and as progress is achieved, this situation will automatically be less affected by the adverse impact of the climate change. Structural changes made with economic development will make sectors more sensitive to the climate change, such as the agricultural sector, which would become stronger and less dependent. Dell et al. (2008) examined the effect of climate change on economic activity. The study’s main results are as follows: an increase of temperatures significantly decreases economic growth in low-income countries. Furthermore, increasing temperature does not affect economic growth in high-income countries. On the other hand, when examining the effects of climate change on the economy, the study of Zhou et al. (2023) is also fundamentally important. Zhou et al. (2023) examined the literature on the effects of climate change risks on the financial sector. In the studies examined, it is generally understood that natural disasters and climate change reduce bank stability, credit supply, stock and bond market returns, and foreign direct investment inflows. In their study for Sri Lanka, Abeysekara et al. (2023) created a study using the general equilibrium model ORANI-G-SL with the objective to investigate the economic impacts of the climate change on agricultural production. The study findings suggest that reductions in the production of many agricultural products will lead to increases in consumer prices for these agricultural commodities, resulting in a decrease in the overall household consumption. The projected decrease in crop production and increases in food prices will increase the potential for food insecurity Another important document in this field is the study by Caruso et al. (2024) examining the relationship between the climate change and human capital. The study findings reveal a two-way result regarding the effects of the climate change damages and the effects of climate change mitigation and adaptation on the human capital. Accordingly, the climate change has direct effects on health, nutrition and welfare, while changes in markets and damage to the infrastructure are expressed as indirect effects. In addition to these studies, the uncertainty of the climate change policies also exerts an impact on economic factors. Studies conducted in this context in recent years have also enriched the literature on the climate change. For example, Çelik and Özarslan Doğan (2024) examined the effects of uncertainty of the climate change policies on economic growth for the USA by using the ARDL bounds test. Their results confirmed the existence of a positive and statistically significant relationship between the climate policy uncertainty and economic growth in the USA. 3. Model Specification  This study empirically examines whether the climate change performance index successfully develops environmental investments in E-7 countries. For further details related to the mathematical model check https://doi.org/10.15388/Ekon.2025.104.2.6 4. Conclusion and Policy Implications  Today, many national and international initiatives are within the scope of combating global warming and climate change. In addition, many developed and developing countries are differentiating their growth and development policies with the objective to prevent these disasters. Although they vary from country to country, as well as from region to region, these policies mostly represent those policies which reduce carbon emissions and ensure energy efficiency. At this point, the key factor is renewable energy investments, which represent environmentally friendly investments. However, according to Abban and Hasan (2021), the amount of environmentally friendly investments is not the same in every country. This is because the determinants of environmentally friendly investments vary from country to country. While financial and economic factors are more encouraging in increasing these investments in some countries, international sanctions are the driving force in this regard in some other countries as well. This study aims to empirically examine whether CCPI is effective in the success of environmental investments in the E-7 countries in the period of 2008–2023 with the help of the Parks-Kmenta estimator. In this direction, the study’s dependent variable is environmental investments, represented by renewable energy investments. On the other hand, the climate change performance is represented by the ‘Climate Change Performance Index’ calculated by Germanwatch, which constitutes the main independent variable of the study. Other control variables considered in the study are the population growth, the real GDP per capita, and inflation. The study findings provide strong evidence that increases in the climate change performance support environmental investments. High-rate climate change performance drives governments and investors toward investing in this area; thus, environmental investments tend to increase. These results are consistent with the study results of Raza et al. (2021). As a result of their study, Raza et al. (2021) stated that the climate change performance is an important channel for the general environmental change, and that renewable energy has a very important role in this regard.  In addition, the study concludes that population growth and inflation negatively affect environmental investments. These results are consistent with Suhrab et al. (2023), but not with Yang et al. (2016). While Suhrab et al. (2023) obtained results regarding the negative effects of inflation on green investments, Yang et al. (2016) focused on the positive effect of population on renewable energy. Finally, the effect of the real GDP per capita on environmental investments has been found to be positive. These results are also consistent with Tudor and Sova (2021). The authors found that Real GDP encourages green investments. This study offers policymakers a number of policy recommendations. These are presented below. • One of the important factors affecting the climate change performance is the raising of awareness of the populations in these countries at this point, and providing them with the knowledge to demand clean energy. In this way, consumers, would demand environmental energy, and investors would invest more in this area. This is of great importance in increasing environmental investments. • The climate change performance also shows how transparent the energy policies implemented by countries are. Therefore, the more achievable and explanatory are the goals of policy makers in this regard, the more climate change performance will increase, which will strengthen environmental investments. • Moreover, the initial installation costs are the most important obstacles on the way toward developing environmental investments. At this point, the country needs to develop support mechanisms that would encourage investors to invest more. • Environmental investments, similar to other types of physical investments, are greatly affected by the country’s macroeconomic indicators. At this point, a stable and foresighted economic policy will encourage an increase in such investments. The countries in the sample group represent developing countries. Therefore, in many countries in this category, the savings rates within the country are insufficient to make investments. 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Diplomacy
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US backs Nato’s latest pledge of support for Ukraine, but in reality seems to have abandoned its European partners

by Stefan Wolff

Recent news from Ukraine has generally been bad. Since the end of May, ever larger Russian air strikes have been documented against Ukrainian cities with devastating consequences for civilians, including in the country’s capital, Kyiv. Amid small and costly but steady gains along the almost 1,000km long frontline, Russia reportedly took full control of the Ukrainian region of Luhansk, part of which it had already occupied before the beginning of its full-scale invasion of Ukraine in February 2022. And according to Dutch and German intelligence reports, some of Russia’s gains on the battlefield are enabled by the widespread use of chemical weapons. It was therefore something of a relief that Nato’s summit in The Hague produced a short joint declaration on June 25 in which Russia was clearly named as a “long-term threat … to Euro-Atlantic security”. Member states restated “their enduring sovereign commitments to provide support to Ukraine”. While the summit declaration made no mention of future Nato membership for Ukraine, the fact that US president Donald Trump agreed to these two statements was widely seen as a success. Yet, within a week of the summit, Washington paused the delivery of critical weapons to Ukraine, including Patriot air defence missiles and long-range precision-strike rockets. The move was ostensibly in response to depleting US stockpiles. This despite the Pentagon’s own analysis, which suggested that the shipment – authorised by the former US president Joe Biden last year – posed no risk to US ammunition supplies. This was bad news for Ukraine. The halt in supplies weakens Kyiv’s ability to protect its large population centres and critical infrastructure against intensifying Russian airstrikes. It also puts limits on Ukraine’s ability to target Russian supply lines and logistics hubs behind the frontlines that have been enabling ground advances. Despite protests from Ukraine and an offer from Germany to buy Patriot missiles from the US for Ukraine, Trump has been in no rush to reverse the decision by the Pentagon.   Another phone call with his Russian counterpart, Vladimir Putin, on July 3, failed to change Trump’s mind, even though he acknowledged his disappointment with the clear lack of willingness by the Kremlin to stop the fighting. What’s more, within hours of the call between the two presidents, Moscow launched the largest drone attack of the war against Kyiv. A day later, Trump spoke with Zelensky. And while the call between them was apparently productive, neither side gave any indication that US weapons shipments to Ukraine would resume quickly. Trump previously paused arms shipments and intelligence sharing with Ukraine in March, 2025 after his acrimonious encounter with Zelensky in the Oval Office. But the US president reversed course after certain concessions had been agreed – whether that was an agreement by Ukraine to an unconditional ceasefire or a deal on the country’s minerals. It is not clear with the current disruption whether Trump is after yet more concessions from Ukraine. The timing is ominous, coming after what had appeared to be a productive Nato summit with a unified stance on Russia’s war of aggression. And it preceded Trump’s call with Putin. This could be read as a signal that Trump was still keen to accommodate at least some of the Russian president’s demands in exchange for the necessary concessions from the Kremlin to agree, finally, the ceasefire that Trump had once envisaged he could achieve in 24 hours. If this is indeed the case, the fact that Trump continues to misread the Russian position is deeply worrying. The Kremlin has clearly drawn its red lines on what it is after in any peace deal with Ukraine. These demands – virtually unchanged since the beginning of the war – include a lifting of sanctions against Russia and no Nato membership for Ukraine, while also insisting that Kyiv must accept limits on its future military forces and recognise Russia’s annexation of Crimea and four regions on the Ukrainian mainland. This will not change as a result of US concessions to Russia but only through pressure on Putin. And Trump has so far been unwilling to apply pressure in a concrete and meaningful way beyond the occasional hints to the press or on social media. Coalition of the willing It is equally clear that Russia’s maximalist demands are unacceptable to Ukraine and its European allies. With little doubt that the US can no longer be relied upon to back the European and Ukrainian position, Kyiv and Europe need to accelerate their own defence efforts. A European coalition of the willing to do just that is slowly taking shape. It straddles the once more rigid boundaries of EU and Nato membership and non-membership, involving countries such as Moldova, Norway and the UK. and including non-European allies including Canada, Japan and South Korea. The European commission’s white paper on European defence is an obvious indication that the threat from Russia and the needs of Ukraine are being taken seriously and, crucially, acted upon. It mobilises some €800 billion (£690 billion) in defence spending and will enable deeper integration of the Ukrainian defence sector with that of the European Union. At the national level, key European allies, in particular Germany, have also committed to increased defence spending and stepped up their forward deployment of forces closer to the borders with Russia. US equivocation will not mean that Ukraine is now on the brink of losing the war against Russia. Nor will Europe discovering its spine on defence put Kyiv immediately in a position to defeat Moscow’s aggression. After decades of relying on the US and neglecting their own defence capabilities, these recent European efforts are a first step in the right direction. They will not turn Europe into a military heavyweight overnight. But they will buy time to do so.

Diplomacy
China flag painted on a clenched fist. Strength, Power, Protest concept

The international reconfiguration's process towards multipolarity. The role of China as an emerging power

by Rachel Lorenzo Llanes

Abstract The international system is currently undergoing a process of reconfiguration that is having an impact on all areas of global development. In this process of reordering power relations, there is a tendency to move towards multipolarity, leaving behind the unipolar coalition established after the Second World War. In this context, several emerging powers are gaining increasing international power, which has led to changes in the hierarchy of power on the international geopolitical chessboard. Such is the case of the People's Republic of China, which has established itself not only as a power of great impact and relevance in the Asian region, but also in the entire international system. Namely, the management of the government and the Party in terms of innovation, industrialization, informatization, productivity, expansion and internationalization of its economic model, positions this country as the most dynamic center of the international economy. Evidencing that alternative models to the capitalist system are possible and viable, which strengthens the trend towards a systemic transition and multipolarity in the International System Introduction In the last two decades, a set of geopolitical and geoeconomic tensions and conflicts have become evident, with significant implications extending throughout the International System. As a result, we are currently experiencing a convulsion of the established order, giving way to a process of new global reconfigurations. In this context, several researchers and academics such as Jorge Casals, Leyde Rodríguez, Juan Sebastián Schulz, among others, have noted that these conditions have led to a crisis and hegemonic transition process, with a trend toward multipolarity in which the Asia-Pacific region is gaining increasing relevance. This article, titled "The International Reconfiguration’s Process Towards Multipolarity: The Role of China as an Emerging Power," is dedicated to analyzing the position of this country within the current international reconfiguration of power. Accordingly, the first section will systematize some essential guidelines to understand the current crisis and the decline of the hegemonic order established in the post-World War II period. The second section will address China's positioning amid the international reconfiguration of power. In this regard, it is important to note that China's rapid rise highlights how development management aligned with the Sustainable Development Goals can lead to a shift in the paradigm of international relations, as well as power reconfigurations that challenge the current balance of forces. Thus, it can be affirmed that China's rise constitutes a decisive element within the current trend toward multipolarity. DevelopmentNew International Order: Approaches to the Multipolar Reconfiguration of the International System The current international context is marked by a process of crisis. This crisis reflects the fact that the world order no longer aligns with the correlation of forces that gave rise to it during the post-World War II period. It is not a circumstantial crisis, but rather the interlinking of various interconnected crises that span across all sectors of life. That is to say, the effects of one crisis often become the causes of another, involving economic, political, social, cultural, ethical, moral, technological, commercial, and environmental components. In other words, it is a structural and systemic crisis—one that cannot be resolved unless a similarly systemic transformation occurs. To gain greater clarity, it is important to consider that the consolidation of the capitalist system brought about the process of globalization. This, in turn, introduced large-scale production and technological development capable of increasing output. This process, along with other characteristics of the system, has exponentially accelerated social inequalities between developed and developing countries. It has also led to strategic tensions over the control of resources, raw materials, and inputs, resulting in geopolitical conflicts. Furthermore, the capitalist system has imposed an extremely high environmental cost, demonstrating that it is exceeding both its own limits and those of the planet. Specifically, in its constant pursuit of profit and maximization of gains, negative environmental impacts are not factored into cost-benefit analyses, leading to widespread environmental degradation. Among other harms caused by the system, we observe a decline in investment rates, an increase in public debt, loss of autonomy in monetary policy, rising unemployment levels, reductions in real wages, and growing inequality, among others. In short, capitalism has become an unsustainable system whose primary concern is profit generation—something that is currently entirely incompatible with environmental preservation and the responsible use of natural resources. Therefore, it can be affirmed that some of its most alarming effects include: vast amounts of currency without backing, increasingly concentrated in fewer hands; acceleration of capital concentration in the West; rising military expenditures; and environmental pollution and destruction (Casals, J., 2023). On the other hand, it is necessary to clarify that, for a particular state to be considered hegemonic, it must not only exert its influence predominantly within the system of international relations; its hegemonic role must also be linked to the founding and establishment of a universally accepted concept of world order. That is, the majority of other states must recognize it as such and identify with the model promoted by the hegemon. Therefore, it is not merely a matter of a hierarchical order among states, but rather the adoption of a dominant model of production that involves those states. As a result, certain mechanisms or general rules of conduct are established for the participating states. For this reason, a hegemonic crisis involving the dominant actor in the system of international relations leads to a crisis in the social, economic, political, and institutional structures upon which that actor’s dominance was built. In light of these elements, we currently observe a set of powers within the International System that are vying to establish a new distribution of power—one that moves away from the unipolar coalition led by the United States following World War II. From this perspective, Juan Sebastián Schulz asserts: “A hegemonic crisis occurs when the existing hegemonic state lacks either the means or the will to continue steering the interstate system in a direction broadly perceived as favorable—not only for its own power, but also for the collective power of the dominant groups within the system.” (Schulz, J. S., 2022) As a result, strategic alliances have been formed and new power groups have emerged that influence international relations.These blocs are precisely what the new polarity is forming around, increasingly reinforcing the trend toward multipolarity. This is a system in which hegemonic influence is not determined by a single power, but by two, three, or more. In this regard, Juan Sebastián Schulz further notes that a process of insubordination is becoming evident, particularly in the Western peripheries. As a consequence, several countries have begun to criticize the configuration of the contemporary world order, initiating efforts to organize and propose alternative models (Schulz, J. S., 2022). This reveals the emergence of a new kind of power hierarchy, generating a global order in which a diversity of forces and actors prevails. In this context, China has experienced rapid growth, thereby contributing to the trend toward multipolarity. While this does not imply that the United States will cease to be one of the central powers in the system of international relations—given its considerable global influence—it is evident that there is a noticeable decline in the dominance it held during the unipolar era that emerged after the collapse of the USSR in 1991. This process of intersystemic transition unfolds in various phases. First, there is an observable economic transition marked by a shift in the center of gravity of the global economy toward emerging and developing economies. This shift is accompanied by a necessary technological transition, characterized by a new struggle—this time to lead the technological revolution. These changes, in turn, must be supported by a political transition. Currently, countries from the Global South have gained increasing prominence on the international stage [1]. From this foundation, a geopolitical transition is also underway, where the center of gravity and decision-making—once concentrated in the Anglo-Saxon West—is shifting toward the Asia-Pacific region. Finally, a cultural or civilizational transition is taking place, wherein the previously dominant value system is giving way to the rise of a new worldview. Based on this, the phases of the transition process can be outlined as follows: Existence of a stable order that brings together the majority of nation-states in the International System. - A crisis of legitimacy begins to affect the established global order. - A deconcentration and delegitimization of power emerges, impacting the hegemonic power. - An arms race and formation of alliances ensue in an attempt to preserve the hierarchical order by any means. This leads to a widespread crisis and the rise and emergence of new actors. - A necessary resolution of the international crisis. - Renewal of the system. (Schulz, J. S., 2022) In light of the above, it can be stated that a “new international order” is taking shape. Its manifestations are multifaceted, such as: - The rise of movements and associations of states that serve as alternatives to the neoliberal order. - Emerging powers like China and Russia are gaining strength in various sectors of the international geopolitical arena. - Russia's confrontation with NATO in the context of the conflict with Ukraine. - Sanctions imposed by the United States on various NATO and European Union countries have strengthened the BRICS nations. - The incorporation of new members into BRICS can be seen as an attempt to counterbalance the economic and political dominance of the United States and the European Union. - The expansion of anti-imperialist and anti-neoliberal integration mechanisms that promote South-South cooperation, such as the G-77 + China group. - The financial sanctions imposed by the West on Russia in the context of the Ukraine conflict have sparked a debate about the viability of the international monetary system and the role of the U.S. dollar as a reserve currency. - China and Russia conduct transactions in yuan and sell oil in this currency to Iran, Venezuela, and Gulf countries. China has increased its economic and political influence in the world, which can be seen as a challenge to U.S. hegemony. Its leadership within BRICS and its growing role in the global economy may be indicators of a shift in the balance of power. All these developments reflect a growing awareness within the International System of States regarding the importance of international cooperation to address global challenges such as the climate crisis, pandemics, and food security. They also serve as indicators that a transformation is underway in the way countries interact with each other, resulting in a shift in the economic, political, and strategic center of gravity. In this context, the United States has unleashed a global hybrid war as a desperate attempt to defend and maintain its hegemonic position, which once appeared unshakable in the postwar world. To this end, it has targeted China, as the latter represents its main threat in the economic and scientific-technological order. From this perspective, tensions between the United States and China have significantly deteriorated since the Republican administration of President Donald Trump. Beginning in 2017, his policy took on an aggressive stance toward China, manifesting through a trade war and economic attacks aimed at preserving U.S. global hegemony. This demonstrates that, in response to a process of decline already underway, nationalist and protectionist efforts intensified in the U.S., with policies targeting some of the emerging pillars of the crisis-ridden world order—China being a primary example. Under the administration of Joseph Biden, the focus shifted toward competition, emphasizing the commitment to protect U.S. sovereignty from potential Chinese threats. A significant shift in U.S. foreign policy toward Taiwan became evident with the approval of arms sales to Taiwan in August 2023, which escalated tensions in the region (Collective of Authors). Furthermore, in recent years, the United States has increasingly worked to generate geopolitical and geoeconomic motivations aimed at fostering tensions between China and Russia, potentially sparking conflict between the two. It has strengthened alliances with neighboring countries of these powers—most notably Taiwan and Ukraine—which has triggered concerns and tensions in both nations. A containment policy has also been deployed, including the imposition of trade barriers and tariffs on Chinese products; restricting Chinese companies’ access to U.S. technology and markets; and promoting the diversification of supply chains to reduce dependence on China. Nevertheless, the ongoing sanctions and restrictions have only served to reaffirm the shared survival interests of both powers, strengthening corporate ties and relations between them. These actions also reflect the growing concern among U.S. power groups over the decline of their hegemonic dominance. The Emergence of China and Its Role in the Transition Toward Multipolarity In a previous article titled "The Synergy Between Economy and Environment in China Through the Achievement of the Sustainable Development Goals," (‘La sinergia entre economía y medio ambiente en China mediante la consecución de los Objetivos de Desarrollo Sostenible’) the process of socioeconomic transformations experienced in the People's Republic of China over the past decade was discussed. These transformations have been primarily aimed at revitalizing the nation in preparation for its centenary in 2049. This strategy is rooted in aligning the Centenary Goals with the Sustainable Development Goals (SDGs) set for 2030, under the leadership of the Communist Party and the momentum driven by President Xi Jinping. The results of this strategy have had an impact not only on the Asian Giant itself—now a decisive actor in the Asian region—but also on the international order as a whole. As a result, China has emerged as a powerful rising power, with promising prospects for further elevating its development standards. This is backed by sustained GDP growth, averaging between 6% and 8% annually, indicating a robust economy. In addition, China holds vast foreign exchange reserves, granting it economic stability and the capacity to withstand potential external shocks. It also invests heavily in modern infrastructure and cutting-edge sectors such as artificial intelligence, 5G technology, and renewable energy—all of which enhance its competitiveness and lay the groundwork for long-term sustainable growth (Lagarde, CH). Nonetheless, China has also had to confront significant challenges in its gradual and progressive approach to the desired development model. Among these is the environmental cost associated with its rapid economic growth. For instance, China still experiences high levels of greenhouse gas (GHG) emissions, along with air, water, and soil pollution. In response, measures have been implemented such as the establishment of a national monitoring network and the replacement of coal heating systems in Beijing. Efforts have also been made to purify water resources polluted by industrial processes, and imports of solid waste have been reduced to help decontaminate soils affected by industrial and agricultural activities (González, R., 2023). In general, the development of renewable energy and a circular economy model is being promoted to enable a gradual transition toward a green economy, grounded in the concept of an ecological civilization. For this reason, China’s new era is committed to scientific and technological innovation as a means of driving economic growth that is both sustainable and capable of ensuring a higher quality of life for its population. This, in turn, leads gradually toward a new model of political leadership and economic management. In this regard, Jin Keyu, Professor of Economics at the London School of Economics and Political Science (LSE), has stated that “trillions of dollars of investment are needed for the global green transition, and China is going to play an essential role in that transformation” (Feingold, S., 2024). Based on the aforementioned elements, various authors such as Dr. C. Charles Pennaforte, Dr. C. Juan Sebastián Schulz, Dr. C. Eduardo Regalado Florido, among others, have indicated that the millenary nation represents a threat to the hegemony held by the United States since World War II. Consequently, it is recognized that a process of hegemonic crisis and transition is currently underway, with the Asia-Pacific region emerging as the center of gravity of the global power, thereby contributing to the multipolar transformation of the International System. The authors of “Is China Changing the World?” argue that “market socialism with “Chinese characteristics” must gradually and more clearly diverge from capitalism if it is to embody a genuinely alternative path for all of humanity.” In pursuit of this goal, China bases its policy of peaceful coexistence on five fundamental principles:Respect for sovereignty and territorial integrity, regardless of a country's size, power, or wealth. Mutual non-aggression Non-interference in the internal affairs of other countries, acknowledging that each nation has the right to freely choose its own social system and path of development. Equality and mutual benefit Peaceful coexistence. (Herrera, R.; Long, Z.; and Andréani, T., 2023) The rise of China as a major international power under these principles has been consolidating since 2012 under the leadership of Xi Jinping and the Communist Party of China (CPC), gaining particular momentum from 2020 to the present. Thus, China has not only become the leading power within the Asian regional balance but has also expanded its presence across Europe, Africa, and Latin America—primarily through loans, investments, and multilateral cooperation initiatives such as the Forum on China-Africa Cooperation (FOCAC) in Africa and the China-CELAC Forum in Latin America. In addition, China has positioned itself as a leader in several sectors, and it is projected that its economy may surpass that of the United States, increasing its Gross Domestic Product (Rodríguez, L., 2022). It has also undergone a process of opening up, energizing both its international trade and its overall foreign relations, all under the control of the Government and the Party. This, combined with its rise and development initiatives, has made China a focal point of interest for many countries within the International System seeking to jointly advance projects based on cooperation, the principle of shared advantage, and multilateralism. In this regard, the white paper "China and the World in the New Era," published by the Central Committee of the Communist Party of China in 2019, states: “The world is moving rapidly toward multipolarity, diverse models of modern development, and collaboration in global governance. It is now impossible for a single country or bloc of countries to dominate world affairs. Stability, peace, and development have become the common aspirations of the international community.” (People’s Republic of China, 2019. Quoted in Schulz, J. S., 2022) Undoubtedly, this rise has become a source of concern for U.S. power groups, which have increasingly applied geostrategic pressure. Notably, the United States has strengthened military alliances with India, Japan, and Australia in an effort to encircle China and attempt to control or obstruct its maritime routes—this also being a manifestation of the intensification of the imperialist arms race. Nonetheless, China has maintained its development strategy and, as part of it, has strengthened its diplomatic network and its relations with multiple countries across all world regions. For all these reasons, China has become the most dynamic center of the global economy. Notably, it went from representing 4% of global GDP in 1960 to 16% in 2020—undeniable evidence of rapid economic growth. Moreover, it has become the world’s largest exporter of goods and also the leading importer, establishing itself as a major industrial power. In this regard, United Nations data reveal that China leads global industrial production, accounting for 30% of the total. This figure surpasses other industrial powers such as the United States (16%), Japan (7%), Germany (5.7%), and South Korea (3.2%) (Schulz, J. S., 2022). In addition, China has remained the world’s leading manufacturing power for approximately 15 consecutive years, according to statements from the Ministry of Industry and Information Technology at the beginning of this year. This sector alone has contributed over 40% to overall growth. Likewise, in 2024, China experienced a significant increase in foreign investment, reflecting its interest in strengthening international cooperation for development. Efforts are also underway for urban renewal in 2024, with around 60,000 projects being implemented across various cities. These initiatives are primarily aimed at transforming underdeveloped neighborhoods and creating smarter urban areas (Embassy of the Republic of Cuba in the People's Republic of China, 2025). In this regard, the following graphs illustrate the value of China’s international trade during the 2016–2024 period, highlighting a strong presence of exports compared to imports. A second chart shows China's global export share, where it holds a dominant position.   Thus, China has risen as a center of power in the international system, with leadership not only in the economic domain but also in science and technology. At the same time, it has promoted a series of investments and a process of internationalizing its national currency. Accordingly, the Asian Giant offers an alternative model of development—one that is more comprehensive and sustainable—allowing it to propel the new phase of Chinese development. This phase aims not only to fulfill the dream of national rejuvenation but also to ensure the survival of its unique political, economic, and social model. Nevertheless, the significant challenges of sustaining growth cannot be overlooked. From this perspective, experts believe that new avenues of growth will be necessary for China to maintain the trajectory it has been experiencing. Specifically, the country must continue expanding its industrial sector while strengthening areas such as artificial intelligence, digital financial services, and green technologies (Feingold, S., 2024). It is also important to highlight the projected continuity and leadership of the Chinese government, with Xi Jinping identified as a key figure in the implementation of the Sustainable Development Goals (SDGs) in China, in conjunction with the socioeconomic transformation strategy toward the 2049 centenary. This has been pursued through the defense of multilateralism, economic openness, and international integration and cooperation in support of global development. Conclusions In light of the above, a decline in U.S. hegemony can be observed, even though this process is not linear—nor is it certain whether any single power or coalition has come to occupy a hegemonic position. What is clear, however, is the existence of a trend toward multipolarity, driven by emerging powers and the strategic ties they are establishing. This is giving rise to a non-hegemonic reconfiguration of power blocs, which are building a multilateral and multipolar institutional framework. It can also be affirmed that China has become the most dynamic center of the global economy. This has been supported by its growth strategy focused on industrialization, digitalization, innovation, productivity, expansion, and internationalization of its development model—while maintaining a strong emphasis on environmental sustainability. A range of key initiatives and development projects have been implemented to support the country's rise, consolidating its role in the multipolar reconfiguration of the International System. All of this has been essential in driving China’s new phase of development and contributing to the broader process of multipolar transformation. Undoubtedly, China’s rapid ascent represents a significant challenge to the International System, as it reflects a shift in international relations and a transformation in the distribution and hierarchy of global power. Notes [1] It is important to clarify that the so-called Global South should not be equated with the Third World, as the distinction between the First and Third Worlds is primarily based on economic and technological differences, which do not align with the current circumstances of the International System of States. In contrast, the term Global South emerges from a new geopolitical perspective that arose in the post–Cold War context, driven by the need to promote South-South cooperation. Moreover, it does not refer to a geographically defined region, as it includes nations from Latin America, the Caribbean, Africa, and the Asia-Pacific.Revista Política Internacional | Volumen VII Nro. 2 abril-junio de 2025. https://doi.org/10.5281/zenodo.15103898This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (CC BY-NC 4.0). The opinions and contents of the published documents are solely the responsibility of their authors.ReferencesCasals, J. (2023). “El Nuevo orden global: amenazas y oportunidades”. Cuadernos de Nuestra América. Nueva época. No.5. RNPS: 2529.Colectivo de autores. “Crisis de hegemonía y ascenso de China. Seis tendencias para una transición”. Tricontinental. Instituto Tricontinental de Investigacion social. Buenoos Aires. Libro digital, PDF, Archivo Digital: descarga y online.Embajada de la República de Cuba en la República Popular China. (2025). Boletín informativo China-22 de enero de 2025. Oficina de Información y Análisis. Embajada de Cuba en República Popular China. Redacción y envío desde info3@embacuba.cn.Feingold, S. (2024). "¿Hacia dónde va la economía china?". World Economic Forum. Recuperado de: https://es.weforum.org/stories/2024/07/hacia-dondeva-la-economia-de-china/García-Herrero, A. (2024). "10 puntos y 18 gráficos sobre la política económica de Xi Jinping tras el tercer pleno". El Grand Continent. Recuperado de: https:// legrandcontinent.eu/es/2024/09/19/esta-china-estancada-10-puntos-y-18-graficos-sobre-la-politicaeconomica-de-xi-jinping-tras-el-tercer-pleno/González, R. (2023). " Medio ambiente en China: Impactos y respuestas del Partido y el Gobierno". CIPI. Recuperado de: www.cipi.cu/medio-ambiente- en-china-impactos-y-respuestas-del-partido-y-gobierno/Lagarde, CH. "Impulsar el crecimiento económico y adaptarse al cambio". Fondo Monetario Internacional. Discursos. Recuperado de: https://www.imf.org/ es/News/Articles/2016/09/27/AM16-SP09282016- Boosting-Growth-Adjusting-to-ChangePereira, CM (2022): “La reemergencia de China frente a la globalización neoliberal y el desafío de la conformación de un mundo multipolar”. Cuadernos de Nuestra America. Nueva Época. No. 05. RNPS: 2529.Schulz, J S. (2022). “Crisis sistémica del orden mundial, transición hegemónica y nuevos actores en el escenario global”. Cuadernos de Nuestra América. Nueva Época. No.03. RNPS: 2529. Bibliografía consultadaAmbrós, I. (2021). “ El Partido Comunista y los desafíos internos de China en el siglo XX”. Recuperado de: https://www.ieee.es/Galerias/fichero/cuadernos/ CE_212/Cap_1_El_Partido_C omunista_y_los_desafios_internos.pdfBanco Mundial (BM). (2023). Recuperado de: https:// datos.bancomundial.org/indicator/NY.GDP.PCAP. KD?locations=CNBBC News Mundo. (2021). "Cómo consiguió China erradicar la pobreza extrema (y las dudas que despierta ese triunfal anuncio del gobierno de Xi". Recuperado de: https://www.bbc.com/mundo/noticias-internacional-56205219Boy, M. (2020). “ Crisis económica y medio ambiente: ¿cómo promover un desarrollo sustentable?”. Recuperado de: https://culturacolectiva.com/opinion/crisis-economica-y-medio-ambiente- mariana-boy-columna-opinion/García, A. (2021). “La globalización neoliberal en crisis”. Recuperado de http://www.cubadebate.cu/opinion/2021/08/30/la-globalizacion-neoliberal-en- crisisGonzález, R. (2020). “El Quinto Pleno del XIX Comité Central del Partido Comunista abre una nueva etapa para China” en “Transiciones del Siglo XXI y China: China y perspectivas post pandemia II”. Libro digital.Herrera, R; Long, Z y Andréani, T. (2023). “¿Está China transformando el mundo?”. Revista Política Internacional. Volumen V. Nro. 1 enero-marzo de 2023.ISSN 2707-7330.Liu, X. y González G. (2021) “El XIV Plan Quinquenal 2021- 2025: reto para el nuevo modelo de desarrollo económico de China”. México y la Cuenca del Pacífico. Vol 10, núm. 30. Recuperado de https://www.scielo.org. mx/pdf/mcp/v10n30/2007-5308-mcp-10-30-57.pdfOtero, M (2022). “La prosperidad común y la circulación dual: el nuevo modelo de desarrollo de China”. Recuperado de: https://www.realinstitutoelcano.org/analisis/la-prosperidad-comun-y-lacirculacion-dual-el-nuevo-modelo-de-desarrollo-de-china/Regalado, E. y Molina, E. (Coord.) (2021). “China y sus relaciones internacionales”. Asociación Venezolana de Estudios sobre China (AVECH) / CEAA / ULA – Centro de Investigaciones de Política Internacional (CIPI, Cuba), Libro digital.Rodríguez, L. (2022). “Configuración multipolar del sistema internacional del siglo XXI”. Revista Política Internacional. Volumen IV Nro. 1 enero-marzo de 2022. ISSN 2707-7330.Weiss, A. (2024). "La frágil fortaleza económica de Estados Unidos". The Economist. Recuperado de: https:// www.lavanguardia.com/dinero/20240212/9516764/ economia-eeuu- fortaleza-fragil-ia-bolsa-mercados. htmlYang, W. (2015). 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Energy & Economics
Xi Jinping and Vladmir Putin at welcoming ceremony (2024)

Russia and China in the Era of Trade Wars and Sanctions

by Ivan Timofeev

Economic relations between Russia and China remain high. Beijing has become Moscow's most important trading partner, and in the context of Western sanctions, it has also become an alternative source of industrial and consumer goods, as well as the largest market for Russian energy and other raw materials. At the same time, external political factors may have a growing influence on Russian-Chinese economic relations. These include the trade war between China and the United States, a possible escalation of US sanctions against Russia, and the expansion of secondary sanctions by the European Union against Chinese companies. The trade war, in the form of increased import duties on imported goods, has become one of the calling cards of Donald Trump's second term in office. The executive order he issued on April 2, 2025, provided a detailed conceptual justification for such a policy. The main goal is the reindustrialisation of the United States through the return or transfer of industrial production to the territory of the US, as well as an equalization of the trade balance with foreign countries. The basic part of Trump's order concerned all countries throughout the world and assumes a tariff increase of 10%. It goes on to determine individual duties on the goods of more than 70 countries, with its own sets for each. China became one of the few countries which decided to mirror the tariff increases. This led to a short-lived and explosive exchange of increases in duties. While it was suspended by negotiations between the two countries in Geneva, it was not removed from the agenda. In the US trade war “against the whole world”, China remains a key target. This is determined by the high level of the US trade deficit in relations with China, which has persisted for more than 40 years. Apparently, it remained comfortable for the US until China made a noticeable leap in the field of industrial and technological development. Such a leap allowed China to gradually overcome its peripheral place in the global economy, displace American and other foreign goods from the domestic market, and occupy niches in foreign markets. Despite the critically important role of American components, patents and technological solutions in a number of industries, China has managed to reduce its dependence on them. The growing industrial and technological power of the PRC is becoming a a political problem for the US. It was clearly identified during the first term of Trump's presidency. Even then, the US pursued a course toward the technological containment of China. Despite the temporary respite in the trade war, US pressure on China will remain. The tariff policy may be supplemented by restrictive new measures (sanctions) in the field of telecommunications and other industries. During the new term of Donald Trump's presidency, the politicisation of issues that the Biden administration avoided putting at the forefront of US-Chinese relations began again. These include the problem of Hong Kong autonomy and the issue of ethnic minorities in the Xinjiang Uyghur Autonomous Region of China. Both issues received a high level of politicisation during Trump's first term. The US-China trade war has so far had little effect on Russian-Chinese relations. The increase in US tariffs has had virtually no effect on Russia. Russia is already facing a significant number of restrictive measures, and the volume of trade with the United States has been reduced to near zero since the start of Moscow’s Special Military Operation in 2022. However, Russia may feel the effects of the trade war. For example, the United States may require China to purchase American energy resources as a measure to correct the trade balance. Obviously, such a measure is unlikely to solve the imbalance. However, it has the potential to affect the volume of Russian oil supplies to China in one way or another. In addition, the trade war as a whole may affect oil prices downwards, which is also disadvantageous for Russia. On the other hand, Russia is a reliable supplier of energy resources for China, which will not politicise them. Even in the context of new aggravations of the trade war, China is unlikely to refuse Russian supplies. Another factor is US sanctions against Russia. After the start of Russian-American negotiations on Ukraine in 2025, Washington avoided using new sanctions, although all previously adopted restrictive measures and their legal mechanisms are in force. However, Donald Trump failed to carry out a diplomatic blitzkrieg and achieve a quick settlement. The negotiations have dragged on and may continue for a long time. If they fail, the United States is ready to escalate sanctions again. Existing legal mechanisms allow, for example, for an increase in the list of blocked persons, including in relation to Chinese companies cooperating with Russia. This practice was widely used by the Biden administration. It was Chinese companies that became the key target of US secondary sanctions targeting Russia. They fell under blocking financial sanctions for deliveries of industrial goods, electronics and other equipment to Russia. However, there was not a single large company among them. We were talking about small manufacturing companies or intermediary firms. At the same time, the Biden administration managed to significantly complicate payments between Russia and China through the threat of secondary sanctions. US Presidential Executive Order 14114 of December 22, 2023 threatened blocking sanctions against foreign financial institutions carrying out transactions in favour of the Russian military-industrial complex. In practice, such sanctions against Chinese financial institutions were practically not applied, except for the blocking of several Chinese payment agents in January 2025. However, the very threat of secondary sanctions forced Chinese banks to exercise a high level of caution in transactions with Russia. This problem has not yet been fully resolved. New legal mechanisms in the field of sanctions, which are being worked on in the United States, may also affect Russian-Chinese relations. We are talking about the bill introduced by US Senator Lindsey Graham and several other senators and members of congress. Their bill assumes that in the event of failure of negotiations with Russia on Ukraine, the US executive branch will receive the authority to impose 500% duties on countries purchasing Russian raw materials, including oil. China may be among them. This threat should hardly be exaggerated for now. The passage of the bill is not predetermined. Even if it is signed into law, the application of 500% tariffs against China will be an extremely difficult matter. Recent rounds of the trade war have shown that China is ready for retaliatory measures. However, the emergence of such a norm will in any case increase the risks for business and may negatively affect Russian suppliers of raw materials. Another factor is EU sanctions policy. Unlike the US, the EU continues to escalate sanctions against Russia despite the negotiations on Ukraine. Brussels is expanding the practice of secondary sanctions, which also affect Chinese companies. In the context of a deepening economic partnership between China and the EU, this factor seems significant. However, in reality, it will play a peripheral role. The EU's practice of secondary sanctions is still significantly more limited than the American one. It does not affect any significant Chinese companies. Problems may be created by the expansion of EU bans on the provision of financial messaging services for Russian banks—this will affect their relations with Chinese counterparties. But such bans stimulate the acceleration of the use of the Chinese CIPS payment system by Russians, which has the functionality of transmitting financial messages. Compared to the US, the EU policy factor remains secondary. First published in the Valdai Discussion Club.

Diplomacy
European and US flags in European Council in Brussels, Belgium on April 4, 2023.

Navigating uncertainty: Where are EU–US relations headed?

by Ionela Maria Ciolan , Jason C. Moyer

Abstract The transatlantic relationship is undergoing a period of critical recalibration, marked by the return of a more transactional US administration and a world order moving towards multipolarity. The return of Donald Trump to the helm of the White House with an ‘America First’ doctrine raises serious questions about US involvement in the transatlantic alliance. President Trump’s repeated claims that the EU was set up to ‘screw’ the US reflect both that his administration is unwilling to engage productively with the EU and that it distrusts multilateral forums, preferring bilateral, nation-to-nation contacts. This article seeks to bring clarity to the future US–EU relationship by identifying some of the points of contention and offering a perspective on how the transatlantic partnership can move forward constructively. KeywordsTransatlantic relations, EU–US relations, Trump administration, EU, Bilateral relations, Multipolar world order Introduction Three years after Russia’s full-scale invasion of Ukraine, a new axis of power is taking form, led by Russia and China and supported by North Korea, Iran and Belarus. This shift brings a profound transformation within the global balance of power and is a direct threat to the liberal international world order. In the midst of this geopolitical recalibration, the return of Donald Trump to the helm of the White House with an ‘America First’ doctrine poses serious questions about US engagement with the transatlantic alliance. There are growing worries about the US’s willingness to continue to honour its Article 5 commitments within NATO and maintain an active role in the collective defence of Europe, but also about the role of the US as a supporter of Ukraine and the liberal multilateral rule-based system. State of play in the EU–US partnership During the first Trump administration, at the state funeral of former US president George H. W. Bush, the EU’s ambassador to the US, David O’Sullivan, was asked to stand at the back of the line-up to pay his respects, breaking diplomatic protocol (Knigge 2019). He politely acquiesced, but in the days that followed it came to light that during the first Trump administration, the US Department of State had downgraded the diplomatic status of the EU in the second half of 2018 without informing the EU Delegation in Washington (Smith 2019). Beyond the failure to communicate this important diplomatic status change, which was not well received in Brussels, and in addition to the protocol issue of having a long-serving foreign ambassador downgraded on the spot at a state funeral, this sent a clear message: the Trump administration does not respect the EU, and nor does it view the Union as an interlocutor. On many occasions during his first administration, Trump’s officials clashed with the EU. In a major foreign policy speech in Brussels, then–Secretary of State Mike Pompeo openly questioned the continued value of the EU and urged European countries to reassert their national sovereignty (Pompeo 2018). As the second Trump administration begins its work with unprecedented vigour, so far the EU has hardly featured as a consideration for the president or his top officials. At the time of writing, the nominated US ambassador to the EU, Andrew Puzder, has not yet testified (Singh and Jones 2025). In his early remarks as secretary of state, Marco Rubio has hardly mentioned the EU at all. On 29 January, the first call between High Representative Kaja Kallas and Rubio took place, alleviating some concerns about the distinct lack of US–EU dialogue taking place due to the change in administration (Liboreiro 2025). However, at the 2025 Munich Security Conference, the new US administration went beyond the usual call for European allies to spend more on defence. Vice-President JD Vance drove home the seismic shift underway in the US commitment to European defence and upended decades of policy (Quinville 2025). Moreover, on the European side, the attempts by some members of the Trump administration to support far-right candidates in Europe (as done by Elon Musk and Vance in Germany and Romania) bring a new level of discomfort and mistrust, as it looks like parts of the administration and Trump’s brand of conservatism, colloquially known as ‘Make America Great Again’ (MAGA), want to export their domestic cultural wars to Europe, thus attacking the core shared value of the transatlantic partnership: liberal democracy. A divorce or just a rough patch in transatlantic relations? Over the past seven decades, successful cooperation between the US and European institutions has helped to build the liberal multilateral world order and to uphold the UN Charter by promoting global stability and prosperity. With a combined population of nearly 800 million people, the US and the EU have the most integrated economic cooperation in the world, accounting for 43% of global GDP and 30% of global trade in goods and services (European Council 2025). President Trump’s repeated claims that the EU was set up to ‘screw’ the US reflect the Trump administration’s unwillingness to engage productively with the EU and its distrust of multilateral forums, and hence its preference for bilateral, nation-to-nation contact. The administration’s growing distrust of the EU also reflects the changing public perception of the EU among segments of the American public, such that 29% of Republicans view the EU as ‘unfriendly’ or ‘hostile’, up from 17% last year, and negative perceptions of Europe among Democrats are also slowly rising (The Economist 2025). This represents an inward turn in American society as politics becomes increasingly polarised. On the other hand, favourable attitudes among Europeans towards the US have fallen below 50%, with only around a third of Germans (32%) and the French (34%) having a positive view of the current American administration, with the least favourable views being held in Denmark, where only 20% approve (Britton 2025). Less than 100 days into his second term, at the time of writing, Trump has already broken long-standing norms and practices in US–European relations. Vance’s critical discourse at the Munich Security Conference, which harshly attacked European values, brought a major departure from traditional diplomatic language. The US vote alongside Russia and North Korea, and against traditional allies, on a UN resolution condemning Russian aggression in Ukraine and calling for the return of occupied territory to Kyiv further deepened concerns (Landale and Jackson 2025). Additional actions, such as the controversial Oval Office meeting between the Trump administration and Ukrainian President Volodymyr Zelensky, the temporary suspension of intelligence and military assistance to Ukraine, the exclusion of Europeans from Ukrainian peace negotiations, and the disproportionate and unjustified tariffs on the EU have heightened European anxiety. These moves have raised fears of a possible end to the transatlantic partnership and a wider US retreat from global leadership. For most Europeans, the second Trump administration appears to be strategically prepared, driven not only by revenge in domestic politics, but also by a sense of retribution in foreign policy. But while distrust has never been higher, it would be a mistake to take the path of severing the relations between the US and the EU. The Euro-Atlantic partnership has suffered similar lows in the past, from vastly different perspectives on the US invasion of Iraq, the Obama administration’s pivot to the Indo-Pacific and the botched withdrawal from Afghanistan. Points of tension and contentionTech On tech regulation, storm clouds are already gathering as Trump has lashed out at the EU for regulating big tech companies (Doan and Stolton 2025). During the transition, the new Trump administration has been noted for the active participation of several tech CEOs. This was most evidently on display during Trump’s inauguration, which saw the likes of Mark Zuckerberg (Meta), Jeff Bezos (Amazon) and Elon Musk (Tesla), as well as other billionaires from around the world (including TikTok’s CEO) gather to welcome in the new administration (Kelly 2025). These tech CEO supporters, not usually as prominently on display in American politics, are flocking to the new administration, which has pledged massive tax cuts for billionaires, the promotion and deregulation of cryptocurrencies, and the removal of restrictions on free speech and fact-checking (Samuel 2025). The EU’s attempts to regulate big tech companies under this new administration will be even more difficult, given their close proximity to and influence on the second Trump presidency. Energy Another likely area of divergence between the US and the EU is in their approaches to energy policy and climate policy. Trump has pledged to ‘drill baby drill’, promising to fund more fossil fuel extraction and curbing green and renewable projects. He has openly called climate change a hoax and ended US participation in the Paris Climate Agreement. Meanwhile, the EU and its member states continue to invest heavily in renewables, with clean energy sources accounting for 70% of the bloc’s electricity demand in 2024 (Vetter 2025). The US, already trailing in wind power and investment in renewables, now risks falling irrevocably behind most of the developing world in clean energy production. Trump might find less of a market for fossil fuels in the EU as a result of its heavy investment in renewables, instead having to turn to other markets. Trade and tariffs On the campaign trail, Trump vowed that as president he would impose tariffs on everyone from China to neighbours, Mexico and Canada, to allies such as the EU. Although the initial tariffs placed on Mexico and Canada were swiftly lifted, a new wave of tariffs of 25% on foreign steel and aluminium was announced on 11 February. This move mirrors that of his first administration (Wiseman 2025). The EU was swift to respond, announcing a slew of counter-measures targeting iconic US products such as jeans, bourbon, peanut butter, whiskey and motorcycles. European steel companies could see as much as 3.7 million tons of steel exports lost as a result of US-imposed tariffs. Together, as noted above, the US and the EU account for about 30% of global trade, with deeply intertwined production and supply chains. However, this does not appear to be part of the Trump administration’s reasoning behind its decision to impose ‘reciprocal’ tariffs of 20% on almost all other EU products as part of its Liberation Day plan. The proposed tariffs could affect around 70% of EU exports to the US, worth around €532 billion ($585 billion) in 2024, with potential tariffs on copper, semiconductors, pharmaceuticals and timber still on the cards (Blenkinsop 2025). As the trade wars begin again, US–EU trade and economic relations will undoubtedly face difficult times over the next four years and risk undermining or limiting cooperation in other areas as a result. Responding to Trump’s announcement, President of the European Commission Ursula von der Leyen, astutely summed up: ‘The global economy will massively suffer. Uncertainty will spiral and trigger the rise of further protectionism. The consequences will be dire for millions of people around the globe’ (European Commission 2025). The EU, in addition to planning and implementing counter-measures to Trump’s tariffs, has to walk a difficult tightrope to maintain its investment ties (Casert 2025). The Arctic Trump’s approach to the Arctic in the days leading up to the transition and in his first three months, most notably his refusal to promise not to invade Greenland by force, if deemed necessary (Kayali 2025), sparked widespread condemnation from European leaders. Trump raised the idea of purchasing Greenland from Denmark in 2019 during his first term, and reasserted his intention to acquire the vast island, rich with rare earth minerals, on a fiery phone call with Danish Prime Minister Mette Frederiksen. In response, the Danish premier garnered support among European heads of state. However, Trump’s focus on Greenland could have profound implications for the balance of power in the Arctic region. Although the Arctic is increasingly discussed in geopolitical terms, in part due to Russia’s and China’s interests in new shipping routes, it remains a zone of peace. The implications of potential NATO infighting over Greenland, and the possibility that this could accelerate Greenland’s independence, could work to China’s or Russia’s advantage and risk disrupting the balance of power in the Arctic region that has allowed peace to prevail. Defence spending The Trump administration’s renewed push for European NATO allies to spend at least 5% of their GDP on defence has reignited tensions over transatlantic burden-sharing. During his first visit to a NATO defence ministers’ meeting, US Secretary of Defense Hegseth made it clear that the US no longer sees an indefinite American presence in Europe as guaranteed (Erling 2025). While these pressures reflect Washington’s frustration over decades of unequal defence spending, they also risk undermining alliance cohesion by demanding an unrealistic increase in European defence budgets. Most European states have already significantly increased their military spending, jointly spending €326 billion on defence in 2024, an increase of 30% since 2021 (European Defence Agency 2024). And the European Commission’s recently launched ReArm Europe/Readiness 2030 initiative proposes an additional €800 billion to help EU member states fill their defence gaps and increase their military production and capacity (Gomez 2025). However, calling for a sudden escalation to 5% of GDP overlooks the political, economic and social constraints within Europe and could provoke backlash rather than cooperation. A more realistic target of 3% to 3.5% of GDP offers a more balanced and politically realistic path, consistent with strengthening NATO’s European pillar, and could be discussed as a new NATO defence commitment at the upcoming Hague Summit this summer. EU defence market The EU is developing its European Defence Technological and Industrial Base in response to the challenging new security and geopolitical reality. A key focus within the plan is strengthening the European internal market for defence, which remains heavily underdeveloped and dependent on non-EU suppliers, notably the US, which accounts for more than half of the EU’s defence procurement. The European Defence Industrial Strategy, launched in 2024 by the European Commission, proposes some ambitious objectives: by 2030, at least 50% of member states’ defence acquisitions should go to the European defence industry, rising to 60% by 2035, and 40% of these procurements should be through collaborative projects (European Commission 2024). Nevertheless, this strategy is not without challenges, as some EU member states, particularly the Eastern European countries, still favour US suppliers and see buying American defence systems as a way to foster security ties with Washington. The return of Trump, along with signs of US disengagement from Europe, has led to a renewed debate within the EU about reducing reliance on American defence capabilities and investing more in equipment ‘Made in Europe’. At the same time, the evolving US position has complicated transatlantic defence industrial cooperation. While Rubio has recently stressed the importance of continued American participation in European defence procurement, the latest EU proposals to prioritise the European defence industry have raised concern in Washington (Cook and Croucher 2025). Any move to limit access for American defence companies might provoke a political backlash, even as European leaders become increasingly worried about the credibility of the US defence commitments. Recent events such as the politicisation of US military aid to Ukraine and the unpredictability of future armament deliverables have further shaken European confidence. But despite the growing uncertainty, EU countries should remain interested in cooperation with the US, not exclusion. The challenge now is to strike a balance: to build a more autonomous and resilient European defence market while maintaining a constructive and cooperative relationship with the US. Ukraine peace negotiations The peace negotiations for Ukraine are becoming a major point of divergence between the US administration under Trump and its European allies. Trump’s main goal is to quickly end the conflict in Ukraine and position himself as a successful deal maker on the global stage. So far, his administration has shown a willingness to make significant concessions to Russia, often unilaterally and without securing reciprocal commitments from Moscow. This approach might be part of a broader strategy that includes weakening Russia’s alliance with China, securing American access to Ukrainian rare earth resources and continuing a larger US strategic pivot towards the Indo-Pacific (Mills 2025). So far, this conciliatory ‘deal making’ has caused anxiety among European leaders, who fear that a hasty or unbalanced peace agreement might lead to a forced Ukrainian capitulation and would undermine long-term European security and stability. Therefore, European countries are insisting on being part of the discussions on defining what a just, long-standing and sustainable peace should look like, a peace that secures Ukraine’s sovereignty and deters further Russian aggression on the country or continent. In parallel, European countries are formulating their own vision for a lasting peace, independent of American leadership. Recent discussions and meetings led by the UK and France are proposing a ‘coalition of the willing’ that would send 10,000 to 30,000 troops to Ukraine to enforce a future ceasefire (O’Sullivan and Khatsenkova 2025). But current plans face significant obstacles: disagreements among European states over troop commitments and mandate, fears of escalation in a direct conflict with Russia and a lack of critical defence enablers that only the US can provide. While countries such as the UK, France and Sweden are considering ‘boots on the ground’ in Ukraine, Eastern European states, notably Poland, remain reluctant, preferring to commit to logistical roles rather than direct engagement. Moreover, European allies are seeking explicit US backstop support (logistical, intelligence and political) to enhance the credibility of the deterrence of these peacekeeping forces against future Russian aggression. The way in which the Ukraine peace negotiations unfold could be a source of further tension between the US and European partners in the months and years to come. A way forward The transatlantic relationship is undergoing a period of critical recalibration, marked by the return of a more transactional US administration and a world order migrating towards multipolarity. A possible way forward in Euro-Atlantic relations is to adopt a pragmatic approach that preserves cooperation where possible while accepting a more interest-based partnership. Paradoxically, as the US pivots towards the Indo-Pacific to counterbalance China’s global rise, this may offer a new avenue for transatlantic rapprochement. Both the US and the EU increasingly recognise the need to address China’s more assertive economic and geopolitical behaviour, and both see the growing socio-political and security threats from the rise of this axis of upheaval formed of China, Russia, Iran and North Korea. For Europeans, navigating this increasingly unstable geopolitical landscape will require clarity, political maturity and a greater sense of strategic responsibility. The EU must continue to invest in its strategic autonomy—not to disengage from the US, but to become a more equal and reliable transatlantic partner. The coming months will be vital in charting a new course for transatlantic cooperation, one that emphasises increased European defence investment, a coordinated approach to the Russian and Chinese threats, the need for a deeper EU–NATO cooperation, a responsible resolution to the war in Ukraine, and a more balanced EU–US partnership. As such, European leaders will need to make a concerted effort to build bridges with the Trump administration by focusing on areas of convergence and mutual strategic interest. What lies ahead is a period of repositioning, a reordering of the transatlantic relationship from one rooted primarily in shared norms, values and principles towards a more pragmatic and transactional partnership based on common interests and careful management of differences. While challenging, this transformation could lead to a more resilient and mature transatlantic alliance, shaped by partners on an equal footing, capable of adapting to the demands of an unstable and unpredictable multipolar world order. ReferencesBlenkinsop P. (2025). EU seeks unity in first strike back at Trump tariffs. Reuters, 7 April. https://www.reuters.com/markets/eu-seeks-unity-first-strike-back-trump-tariffs-2025-04-06/. Accessed 7 April 2025.Britton H. (2025). European favourability of the USA falls following the return of Donald Trump. YouGov, 4 March. https://yougov.co.uk/international/articles/51719-european-favourability-of-the-usa-falls-following-the-return-of-donald-trump. Accessed 8 March 2025.Casert R. (2025). EU vows countermeasures to US tariffs. Bourbon, jeans, peanut butter, motorcycles are easy targets. The Associated Press, 11 February. https://apnews.com/article/eu-us-tariffs-trump-trade-war-leyen-0b23d25d30428eb288b79bfda4fa25e9. Accessed 16 February 2025.Cook E., Croucher S. (2025). Europe’s plan to ditch US weapons spooks Trump administration: Report. Newsweek, 2 April. https://www.newsweek.com/europes-plan-ditch-us-weapons-spooks-pentagon-report-2054087. Accessed 2 April 2025.Doan L., Stolton S. (2025). Trump blasts EU regulators for targeting Apple, Google, Meta. Bloomberg, 23 January. https://www.bloomberg.com/news/articles/2025-01-23/trump-blasts-eu-regulators-for-targeting-apple-google-meta. Accessed 5 February 2025.Erling B. (2025). Hegseth tells Europe to spend on defence as US presence may not last forever. Reuters, 14 February. https://www.reuters.com/world/europe/hegseth-tells-europe-spend-defence-us-presence-continent-may-not-be-forever-2025-02-14/. Accessed 17 February 2025.European Commission. (2024). The European Defence Industrial Strategy at a glance. https://defence-industry-space.ec.europa.eu/eu-defence-industry/edis-our-common-defence-industrial-strategy_en. Accessed 5 March 2025.European Commission. (2025). Statement by President von der Leyen on the announcement of universal tariffs by the US. 3 April. https://ec.europa.Eu/commission/presscorner/detail/mt/statement_25_964. Accessed 7 April 2025.European Council. (2025). EU relations with the United States. https://www.consilium.europa.eu/en/policies/united-states/. Accessed 25 March 2025.European Defence Agency. (2024). EU defence spending hits new records in 2023, 2024. 4 December. https://eda.europa.Eu/news-and-events/news/2024/12/04/eu-defence-spending-hits-new-records-in-2023-2024#. Accessed 22 January 2025.Gomez J. (2025). Readiness 2030: How is Europe planning to rearm and can it afford it? Euronews, 26 March. https://www.euronews.com/my-europe/2025/03/26/readiness-2030-how-is-europe-planning-to-rearm-and-can-it-afford-it. Accessed 27 March 2025.Kayali L. (2025). Trump doesn’t rule out military intervention in Greenland—again. Politico Europe, 30 March. https://www.politico.eu/article/usa-donald-trump-military-intervention-greenland-again-denmark/. Accessed 30 March 2025.Kelly S. (2025). Trump’s inauguration billionaires, CEOs: Ambani, Zuckerberg, Bezos attend church, ceremony. Reuters, 21 January. https://www.reuters.com/world/us/trumps-inauguration-billionaires-ceos-ambani-zuckerberg-bezos-attend-church-2025-01-20/. Accessed 12 February 2025.Knigge M. (2019). Washington downgrades EU mission to US. Deutsche Welle, 1 August. https://www.dw.com/en/trump-administration-downgrades-eu-mission-to-us/a-46990608?maca=en-Twitter-sharing. Accessed 14 January 2025.Landale J., Jackson P. (2025). US sides with Russia in UN resolutions on Ukraine. BBC, 25 February. https://www.bbc.com/news/articles/c7435pnle0go. Accessed 27 February 2025.Liboreiro J. (2025). In first call, Kaja Kallas and Marco Rubio agree to keep ‘maximum pressure’ on Russia. Euronews, 29 January. https://www.euronews.com/my-europe/2025/01/29/in-first-call-kaja-kallas-and-marco-rubio-agree-to-keep-maximum-pressure-on-russia. Accessed 3 February 2025.Mills C. (2025). Ukraine and Russia: A shift in US policy. House of Commons Library UK Parliament, 3 April. https://commonslibrary.parliament.uk/research-briefings/cbp-10218/. Accessed 3 April 2025.O’Sullivan D., Khatsenkova S. (2025). French President Macron announces plan for ‘reassurance force’ in Ukraine. Euronews, 27 March. https://www.euronews.com/my-europe/2025/03/27/coalition-of-the-willing-meets-in-paris-to-strengthen-support-for-ukraine. Accessed 27 March 2025.Pompeo M. R. (2018). ‘Restoring the role of the nation-state in the liberal international order’. Speech made to the members of the German Marshall Fund, Brussels, 4 December 2018. U.S. Department of State. https://2017-2021.state.gov/restoring-the-role-of-the-nation-state-in-the-liberal-international-order-2/. Accessed 20 January 2025.Quinville R. S. (2025). Making sense of the Munich Security Conference. Wilson Center, 18 February. https://www.wilsoncenter.org/article/making-sense-munich-security-conference. Accessed 22 February 2025.Samuel S. (2025). The broligarchs have a vision for the new Trump term. It’s darker than you think. Vox, 20 January. https://www.vox.com/future-perfect/395646/trump-inauguration-broligarchs-musk-zuckerberg-bezos-thiel. Accessed 7 February 2025.Singh K., Jones R. P. (2025). Trump nominates former CKE Restaurants CEO Puzder as US ambassador to EU. Reuters, 23 January. https://www.reuters.com/world/us/trump-nominates-former-cke-restaurants-ceo-puzder-us-ambassador-eu-2025-01-23/. Accessed 1 February 2025.Smith K. E. (2019). The Trump administration downgraded the E.U.’s diplomatic status in Washington. That’s going to hurt. The Washington Post, 8 January. https://www.washingtonpost.com/news/monkey-cage/wp/2019/01/08/the-trump-administration-is-downgrading-the-e-u-s-diplomatic-status-in-washington-thats-going-to-hurt/. Accessed 17 January 2025.The Economist. (2025). Schooled by Trump, Americans are learning to dislike their allies. 31 March. https://www.economist.Com/graphic-detail/2025/03/31/schooled-by-trump-americans-are-learning-to-dislike-their-allies. Accessed 1 April 2025.Vetter D. (2025). As Trump dumps clean energy, fossil fuels lose their grip on Europe. Forbes, 23 January. https://www.forbes.com/sites/davidrvetter/2025/01/23/as-trump-dumps-clean-energy-fossil-fuels-lose-their-grip-on-europe/. Accessed 13 February 2025.Wiseman P. (2025). Trump once again slaps taxes on foreign steel, aluminum, a move that proved costly in his first term. The Associated Press, 10 February. https://apnews.com/article/trump-tariffs-steel-aluminum-jobs-mexico-canada-89815eeb12ff28b83f5b855ca44f1820. Accessed 15 February 2025.Corresponding author(s):Ionela Maria Ciolan, Wilfried Martens Centre for European Studies, Rue du Commerce 20, 1000 Brussels Belgium. Email: iciolan@martenscentre.eu

Defense & Security
flag country Europe defense army

European Union Strategic Autonomy. Necessary but potentially problematic?

by Krzysztof Śliwiński

Abstract This paper examines the evolving concept of European Union Strategic Autonomy (EU-SA) within the context of contemporary geopolitical challenges, with a particular focus on EU-Russia and EU-China relations. EU-SA reflects the EU's aspiration to act independently in foreign policy, security, defence, and economic affairs, moving from a rule-taker to a rule-maker in global politics. The study outlines the historical development of EU-SA from 2013 to the present, highlighting key milestones such as the Strategic Compass and the impact of the Ukraine War, which accelerated efforts toward defence collaboration, energy independence, and economic resilience. It explores the transatlantic dynamics, noting growing uncertainties in the U.S. commitment to NATO and the resulting push for a more autonomous European defence posture. Additionally, it addresses the complex EU-China relationship, marked by both cooperation and competition, as well as the strained EU-Russia ties amid ongoing conflict. The paper concludes by questioning the economic feasibility and political risks of deeper EU strategic autonomy, especially regarding security centralisation and Germany's leadership role. Key Words: EU, Strategic Autonomy, Security, Geopolitics, U.S, China, Russia Introduction At the 2025 North Atlantic Treaty Organisation (NATO) Summit in The Hague, member states (Allies) committed to investing 5% of their Gross Domestic Product (GDP) annually in core defence requirements and defence- and security-related spending by 2035. They will allocate at least 3.5% of GDP annually, based on the agreed-upon definition of NATO defence expenditure, by 2035 to resource core defence requirements and meet the NATO Capability Targets. Allies agreed to submit annual plans that show a credible, incremental path to achieving this goal.[1] At the same time, Spain secured a special compromise, committing to meet core requirements with just 2.1% of GDP, making it the only exception to the broader 5% target. Previously, in 2014, NATO Heads of State and Government had agreed to commit 2% of their national GDP to defence spending, to help ensure the Alliance's continued military readiness. This decision was taken in response to Russia's illegal annexation of Crimea, and amid broader instability in the Middle East. The 2014 Defence Investment Pledge was built on an earlier commitment to meeting this 2% of GDP guideline, agreed in 2006 by NATO Defence Ministers. In light of the increase in defence spending, given that 23 out of 32 NATO Allies are EU member states, the idea of European Union strategic autonomy (EU-SA) comes to mind. This paper will explore the issue of EU-SA with a specific reference to EU-Russia and EU-China relations.[2] A Brief History of EU Strategic Autonomy European Union strategic autonomy is an evolving concept that reflects its ambition to act independently in strategically important policy areas, including foreign policy, security, defence, and economic relations. Strong strategic autonomy, according to Barbara Lippert, Nicolai von Ondarza and Volker Perthes, means being able to set, modify and enforce international rules, as opposed to (unwillingly) obeying rules set by others. The opposite of strategic autonomy is being a rule-taker, subject to strategic decisions made by others, such as the United States, China, or Russia.[3] The concept was first prominently discussed in the context of defence in 2013 and has since expanded to encompass a broader range of policy areas. Historically speaking, one can identify numerous phases during which EU-SA evolved. - 2013-2016: During this period, EU-SA focused on security and defence, with initiatives like the Permanent Structured Cooperation (PESCO) and the European Defence Fund, aiming to strengthen the EU's defence capabilities.[4]  - 2017-2019: During this period, the EU-SA shifted its focus to defending European interests in a hostile geopolitical environment, influenced by events such as Brexit, the Trump presidency, and China's growing assertiveness.- 2020: The COVID-19 pandemic highlighted economic vulnerabilities, prompting a focus on mitigating dependence on foreign supply chains, particularly in critical sectors like health and technology.- Since 2021: The scope widened to virtually all EU policy areas, including digital, energy, and values, with terminology evolving to include "open strategic autonomy," "strategic sovereignty," "capacity to act," and "resilience".- 2022: The Ukraine War and Accelerated Implementation. Russia's invasion of Ukraine catalysed concrete actions toward EU-SA, notably in defence, energy independence, and economic resilience. The European Council's Versailles Declaration (March 2022) expressed strong political will to increase EU-SA, calling for collaborative investments in defence, phasing out dependency on Russian energy, and reducing reliance on critical raw materials, semiconductors, health, digital technologies, and food imports.[5] - The Strategic Compass for security and defence policy (endorsed March 2022) outlines a roadmap to 2030, emphasising strengthened EU defence capacities. Among others, it includes: o   Establishment of a strong EU Rapid Deployment Capacity of up to 5000 troops for different types of crises.o   Ready to deploy 200 fully equipped Common Security and Defence Policy (CSDP) mission experts within 30 days, including in complex environments.[6]o   Conducting regular live exercises on land and at sea.o   Enhanced military mobility.o   Reinforcement of the EU's civilian and military CSDP missions and operations by promoting a rapid and more flexible decision-making process, acting more robustly and ensuring greater financial solidarity.o   Making full use of the European Peace Facility to support partners.[7] According to the EU itself, the EU-SA is not a zero-sum game, but rather a sliding scale between complete autonomy and full dependency, with different results for different policy areas. What is more, when compared to the famous Maslow's hierarchy of needs (European Parliament briefing's language), the EU is not only perceived as an economic power, but it is also seen as a normative power. Therefore, the EU is recognised for its core values of democracy, human rights and the rule of law. Ultimately, Maslow's “self-actualisation” could mean the achievement of an EU in which citizens recognise their European identity and which has realised its full autonomous policy potential.[8]   As if this is not enough, the same source introduces the concept of the 360° strategic autonomy wheel, which reportedly illustrates policy areas in which the EU aims for greater strategic autonomy, as well as the connections between them. Mutual influence between policy areas can happen across the wheel, but is particularly strong in adjacent areas. Military action, for example, can cause migration, health is linked to food quality, energy policy influences the climate, and misinformation undermines democracy. The wheel can help to understand links, set priorities and view potential conflicts. More autonomy in the digital green economy will, for example, require vast quantities of “rare earth” materials, making the EU more (instead of less) dependent on imports. Reductions in energy consumption achieved through the digitalisation of the economy (for example, by reducing transport) will be partly offset by the increase in energy consumption by electronic devices and data centres.   Global Context The significance of EU-SA lies in ensuring the EU's political survival and global influence in a multipolar world where its relative power is diminishing. The EU's long-term economic outlook is bleak: its share of global GDP, now at 17% (at current prices), could nearly halve by 2050. According to the World Economic Forum, this economic backsliding not only threatens Europe's ability to fund its social model but also risks weighing on the bloc's global influence, leaving it even more dependent on the U.S. and China.[9] Moreover, the COVID-19 pandemic highlighted the conflictual nature of economic interdependence, as reliance on foreign supply chains for critical goods exposed vulnerabilities. Soft power has become an instrument of hard power, necessitating autonomy in trade, finance, and investment.  The U.S.'s strategic pivot to Asia, the exclusion of Europe in conflicts like Nagorno-Karabakh, Libya, and Syria (termed Astanisation[10], which favours Russia and Turkey), the sidelining of the EU in EU-Russia negotiations regarding the war in Ukraine, and China's state-led economic model have all pushed the EU towards the sidelines. Transatlantic divide Security is a critical dimension, with significant uncertainty surrounding the U.S. commitment to NATO under the Trump administration. Reports indicate Trump has questioned NATO's Article 5 guarantees, with actions like withdrawing military personnel from a Ukraine aid hub in Poland on April 8, 2025, and proposing to stand down 10,000 light infantry troops in Poland, Romania, and the Baltic states by 2025.[11] This has led to fears of a "NATO-minus" scenario, where the EU must fill security gaps without full U.S. backing. In response, the EU is pushing for greater strategic autonomy in defence. Initiatives like ReArm EU are mentioned, with calls for the EU to develop a stand-alone, integrated military capacity to stabilise the global economy. As Jean-Pierre Maulny, Deputy Director of the French Institute for International and Strategic Affairs (IRIS), adequately observes "The risk is now clear: a form of bilateral agreement between the United States and Russia, benefiting the interests of both countries, could leave Ukraine severely weakened and an easy prey for Moscow, thereby weakening other European countries consequently. As a consolation prize, we will have to ensure Europe's conventional security, as U.S. Secretary of Defence Pete Hegseth announced to Europeans at the opening of the NATO ministerial meeting held in Brussels on 12–13 February 2025. This situation will place Europeans in a terrible dilemma: Either they do not wish to provide security guarantees to Ukraine and risk completely discrediting themselves in the eyes of powers such as the United States, Russia, and China, as Europeans will have demonstrated that they are unable to defend the continent, while also creating a significant long-term risk to Europe's security. Alternatively, they could provide security guarantees to Ukraine, accepting the financial burden that would impact the European Union's long-term competitiveness. In light of this situation, some advocate for the establishment of a European pillar within NATO. If one considers that the United States is negotiating peace in Europe without and against the Europeans, and that they no longer wish to defend Europe with conventional military means (will they respect the NATO Defence Planning Process?), Europeans should take on Europe's security fully. This would mean taking control of NATO. It will also be easier to make NATO and the European Union work together with a more Europeanised organisation".[12] Economically, there are several issues that contemporary demand addresses, but the most pressing is, of course, the Tariffs. The U.S. and European Union are running out of time to strike a deal on trade tariffs. Negotiations have been slow since both the U.S. and EU temporarily cut duties on each other until July 9. If an agreement is not achieved by then, full reciprocal import tariffs of 50% on EU goods, and the bloc's wide-spanning countermeasures are set to come into effect.[13] According to Almut Möller, Director for European and Global Affairs and head of the Europe in the World programme (European Policy Centre), "for the first time in decades, Europeans can no longer rely on a benign partner on the other side of the Atlantic, leaving them dangerously exposed and acutely vulnerable, including on the very foundations of liberal democracy. Until recently, the U.S. dominated a world order that provided a favourable environment for the EU to extend its membership, further develop, and leverage its strengths, particularly as a trading power, without having to worry much about geopolitics. Suddenly, liberal Europe looks very lonely, and is struggling to keep up with a world of change".[14] Other problems arguably include digital regulation and data protection, antitrust policy and digital taxation, fiscal policy and social protection, geopolitical rivalries, China's rise, and competition and trade policy. EU–China conundrum Both the EU and the U.S. are concerned about China's growing economic and technological influence, but they have differing approaches to addressing this challenge. The EU has sought to maintain a balance between cooperation and competition with China, while the U.S. has adopted a more confrontational approach.[15] These differences have led to tensions in areas such as trade policy and technology regulation. For example, the EU has been critical of the U.S.'s unilateral approach to addressing China's trade practices, while the U.S. has accused the EU of being too lenient towards China. These disagreements have made it difficult to achieve a coordinated transatlantic response to China's rise.[16] According to German experts, the balance of power between China and the EU and its member states is developing increasingly asymmetrically to Europe's disadvantage. Only in trade policy – and partially in investment – can the EU maintain its position in a manner respected by China.[17] Europe holds significant importance for China across various dimensions: economically, as its top supplier and second-largest export destination; technologically, as a source of advanced technology; institutionally, as a model to emulate; politically, to advance its objectives concerning other nations, particularly the United States; and selectively, as a collaborator in areas like global health and regional stabilisation. Unlike Russia and the United States, China perceives a vital interest in the EU's continued existence and unity within a multipolar world; yet, it employs a "divide and rule" strategy. China selectively rewards or penalises individual EU countries based on their political and economic significance and their compliance with China's expectations on key issues. These issues include arms sales to Taiwan, meetings with the Tibetan Dalai Lama, and positions on the Uighurs, human rights in China, and the South China Sea. China engages with Europe on multiple levels — political, economic, technological, cultural, and academic — using various political channels (such as strategic partnerships with the EU and individual EU member states), dialogue formats (like the 16+1 format with sixteen Central and Eastern European countries), and high-level bilateral intergovernmental consultations with Germany, France, and the United Kingdom. China's hopes that the European Union would emerge as an independent and comprehensive player in global politics, serving as a counterbalance to the United States, have diminished. However, China would be supportive of any European efforts towards achieving strategic autonomy, provided it does not translate into a confrontational approach towards China itself. In contrast, Europe's political priorities—such as ensuring peace and stability in East Asia, China's role in global stability, development, environmental issues, climate change, and non-proliferation, as well as improving human rights in China — are often considered secondary and are not actively pursued by all EU member states. Europe lacks a unified and assertive foreign policy stance regarding the geopolitical rivalry between the United States and China for dominance in the Asia-Pacific region. There is also an absence of a clear position on China's authoritarian vision of order. Even in trade and investment disputes, Europe struggles to establish a unified approach to resolving these issues. The EU member states are too diverse in terms of size, profiles, and interests in their dealings with China: Economically, there is a divide between countries that are appealing industrial and technological partners for China and those that compete for favour in Beijing. Some nations have a clear interest in global governance. Additionally, the United Kingdom and France maintain their respective military presences in the Asia region. In this context, ReArm EU and its financial instrument SAFE (analysed here https://worldnewworld.com/page/content.php?no=5384 ) have the potential to provide the EU with meaningful strategic autonomy and invite genuine geopolitical actorness. EU–Russia conundrum Since Donald Trump took office as the U.S. president, the coordination of transatlantic policies regarding Russia has largely disintegrated. The White House's openness to a comprehensive "deal" with Russian President Vladimir Putin contrasts with Congress's attempts to limit Trump's foreign policy options with Russia, resulting in the marginalisation of coordination with European allies. This situation is further complicated by Washington's increasing reliance on extraterritorial sanctions, a trend that began before Trump's presidency. Consequently, according to European foreign and security experts, Europe must achieve greater strategic autonomy in its dealings with Russia. However, this relationship is particularly strained by significant conflicts of interest. Russia's invasion of Ukraine significantly disrupted the previously peaceful and liberal democratic relations among European nations. Putin's "special military operation" compelled the EU to introduce seventeen (so far) escalating economic sanction packages aimed at undermining the Russian economy and ultimately limiting Russia's capacity to continue the war. In a gesture of solidarity with Ukraine, the EU has also allocated billions of euros to both EU member states and Ukraine to avert a humanitarian disaster and ensure the provision of essential needs for Ukrainians fleeing the conflict.[18] After three and a half years from the outset of the war, Russia continues to pose a complex challenge that the EU and European nations cannot address independently in the foreseeable future. If the U.S. security guarantee weakens before Europe can bolster its own capabilities, the EU could face new vulnerabilities that Russia might exploit along its external borders, such as in the Baltic states, and elsewhere. Currently, the EU and its member states lack sufficient means to deter Russia from pursuing its interests aggressively and recklessly in the shared neighbourhood.[19] Critics, on the other hand, argue that calls for EU strategic autonomy, particularly the creation of a European Army and a significant increase in military spending, are a double-edged sword. First, the primary official rationale is that the EU must prepare itself for a possible attack on EU member states by Russia. The legacy media are full of European leaders claiming that Russia will sooner or later attack Europe.[20] Yet, this claim is not substantiated with much evidence. The proponents of the European army completely disregard numerous doubts surrounding the 2013/2014 "Euromaidan" and the role of the CIA in the events.[21] Second, according to the Office of the High Commissioner for Human Rights (OHCHR) 's estimations, the total number of conflict-related casualties in Ukraine from April 14, 2014, to December 31, 2021, stood at 51,000 – 54,000. These numbers are broken down as follows: 14,200 - 14,400 killed (at least 3,404 civilians, estimated 4,400 Ukrainian forces, and estimated 6,500 members of armed groups), and 37,000 - 39,000 injured (7,000 – 9,000 civilians, 13,800 – 14,200 Ukrainian forces and 15,800 - 16,200 members of armed groups).[22] In short, the situation was chaotic, with many casualties among civilians. Third, it was allegedly Europeans who torpedoed a first chance of peace negotiations as early as April 2014 in Istanbul.[23] Fourth, many European leaders seem to be utterly oblivious to the fact that the prolongation of the war adds to the destruction of Ukraine and Ukrainian society, deaths and emigration. Last but not least, given the fact that it is Germany that calls for both the European Army and the federalisation of Europe (with some assistance from France), one should be extra careful given the role of Germans during the WWII and the fact that neither has there been any official peace treaty with Germany nor have they recompensated countries such as Poland. Conclusion Strategic autonomy may be a necessity for Europe, given the dynamics of transatlantic relationships. The questions, however, that have to be pondered (and it does not seem that anyone in the legacy media or mainstream academia is ready to ask them) are numerous. Who will pay for that? Can Europeans afford such expenses under the current economic circumstances, and even worse economic prospects? Is the centralisation of security and military a Pandora's box? Should Europeans allow Germany (of all EU member states) to take special responsibility for this project? Isn't the pro-war rhetoric of Western political leaders making relations with Russia even more tense and dangerous, in other words, leading to escalation? History has solemnly proven that when left to their own devices, the Europeans inevitably create disastrous conflicts that have lasting consequences for generations. The American pivot to Asia and the consequent withdrawal from Europe may therefore have tragic ramifications for the European continent. References[1] Defence expenditures and NATO’s 5% commitment. 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