China’s PLA and Europe’s Supply Chain Trap: Navigating U.S. Pressure and China’s Influence

Executive Summary

The modernization and global posture of China’s People’s Liberation Army (PLA) present a growing strategic challenge for the European Union at a moment when transatlantic unity faces unprecedented strain. While the PLA does not maintain a direct military presence in Europe, its influence permeates through cyber capabilities, strategic investments, technology acquisition strategies, and supply chain dependencies. The emergence of a more aggressive and transactional U.S. approach toward China (and Europe), characterized by comprehensive decoupling efforts, technology restrictions, and demands for allied conformity—places the EU in an increasingly difficult position. Brussels must navigate between Washington’s pressure for technological and economic separation from Beijing, threats of taking over European territory, support for Russia in Ukraine, and its own imperative to maintain pragmatic engagement with the world’s second-largest economy. This brief outlines the PLA’s evolving role, its impact on European security and industrial resilience, the complications arising from divergent transatlantic approaches, and policy recommendations for the EU to safeguard its strategic autonomy while managing relations with both great powers.