The outcome of the US-China trade war is anticipated to be quite different from the experience of Japan in the 1980s and 1990s, due to China’s relatively lower dependence on the US and having learned from Japan’s experience.

Despite recent Belt and Road successes, including EU states joining, the China-led initiative still faces accusations of “debt-trap diplomacy.” The details of infrastructure projects in Sri Lanka and beyond, however, show that the Belt and Road is pushing for a new era of more equitable globalization based on “hard” and “soft” connectivity, without disrupting the existing rules and world order.

The U.S.-China trade war is heating up once again.

During the Second Belt and Road Initiative (BRI) Summit last month, the Chinese government notably shifted its focus and is now downplaying fears of debt encumbrance, corruption, and environmental degradation. But this should not distract us from the key fact that participation in the BRI continues to grow, including from traditional U.S. allies in Asia and Europe.

China’s latest earnings reports show that new technologies are at the center of national growth despite its slowing economy, with new energy vehicles and 5G communications equipment sellers performing especially well. Even so, China’s economy continues to suffer from softer global demand and the ongoing trade war with the U.S.

In its own statement, Beijing did not exude the same optimism.

After a disappointing performance in 2018, China’s economy appears to be stabilizing. In the first quarter of 2019, GDP growth, at 6.4% year-on-year, matched that of the previous quarter. But growth in industrial production exceeded expectations, expanding by 6.5% year on year (and by 8.5% in March). Even exports growth was positive, albeit weak, despite the ongoing trade war with the United States.

With the United States not offering the political and economic support Europe needs to offset China’s influence, leaders like Macron and Merkel face the challenge of retaining the multilateral global order today, while also engaging China on key economic and global issues.

Greece’s recent decision to join China’s 16+1 initiative signals that cooperation between China and the Central and Eastern European Countries (CEEC) is strengthening. While both the BRI and 17+1 should remain vulnerable to criticism, the summits are building diplomatic bridges between European nations, while simultaneously expanding China’s influence.

In Europe’s biggest capitals, there has been significant skepticism about the Belt and Road Initiative and the Chinese government’s development strategy. As Beijing seeks to push through its 16+1 economic plan, friction with Brussels will continue to mount.