Power Competition Digest

How Europe, middle powers and blocs adapt to US–China rivalry and Russia’s role

How Europe, middle powers and blocs adapt to US–China rivalry and Russia’s role

Global Positioning in the US–China Era

Navigating the New Geopolitical Landscape in 2026: Europe, Middle Powers, and the US–China Rivalry

As of 2026, the global geopolitical environment is marked by an unprecedented intensification of the US–China rivalry, with Russia strategically positioning itself as a critical actor in this multipolar contest. European nations, middle powers, and regional actors are actively recalibrating their policies—balancing diplomatic hedging, economic diversification, and military cooperation—to navigate this complex landscape. Meanwhile, the evolving roles of gray-zone tactics and technological advancements continue to shape the contours of international stability.

The US–China Stabilization and Its Impact on Global Strategies

Recent developments suggest a fragile stabilization in US-China relations, as highlighted in the latest Trivium Weekly Recap titled "Chinamaxxing or Chinataxxing". Despite ongoing tensions, both countries have shown signs of cautious engagement, which influences how regional and middle powers formulate their strategies. This tentative thaw, characterized by sporadic diplomatic dialogues and limited economic concessions, has provided some room for maneuver but remains highly unstable—raising questions about the durability of peace and the risk of miscalculation.

This fragile equilibrium impacts European and middle power calculations significantly. Nations like Germany, the UK, and Canada are increasingly aware that their strategies cannot rely solely on balancing but must also incorporate resilience measures to withstand potential shocks—be it a sudden deterioration in US–China ties or escalation from Russia.

Europe's Diplomatic Hedging and Strategic Shift

European countries, especially Germany, continue to wrestle with diplomatic dilemmas. On one hand, Germany's deep economic ties with China—particularly in sectors like automotive, technology, and infrastructure—offer significant growth prospects. On the other, security commitments to the US and NATO demand a cautious stance to avoid becoming overly dependent on Chinese supply chains or technological infrastructure that could be weaponized during crises.

The European Union is increasingly emphasizing trade and technological sovereignty. Recent initiatives aim to:

  • Strengthen trade defense mechanisms to reduce dependency on superpowers.
  • Improve enforcement of export controls, particularly on dual-use technologies like hypersonic weapons and advanced AI chips, with recent licensing restrictions on products like Nvidia’s H200 chip exemplifying this shift.
  • Develop resilient supply chains in critical sectors such as semiconductors and rare earth minerals, including efforts to diversify resource sources—e.g., Indonesia's nickel exports and Malaysia's semiconductor investments.

These measures seek to preserve strategic autonomy while maintaining open economic engagement. EU policymakers are also engaging in diplomatic efforts to foster multilateral frameworks that regulate emerging technologies and prevent escalation.

Middle Powers and Regional Actors: Balancing and Diversifying

Middle powers such as the UK, Canada, and Australia are pursuing hedging strategies—strengthening alliances with the US while maintaining dialogue with China. Since early 2026, the UK and Canada have increased military collaborations, participated in joint exercises, and shared intelligence to counter Chinese coercion, particularly in the Indo-Pacific region.

Regional actors like the Philippines, Taiwan, Vietnam, and India are actively enhancing their defense postures amid Chinese assertiveness:

  • Taiwan and the Philippines have increased joint patrols and deployed missile defense systems like THAAD, supported by US military aid.
  • Vietnam is diversifying its supply chains and seeking strategic partnerships to bolster resilience.
  • India is challenging Chinese influence through provocative military actions and diplomatic outreach, aligning with broader regional efforts to counterbalance Beijing.

These actors are also navigating their own strategic calculations, seeking to maximize security benefits while avoiding antagonizing either superpower.

Russia’s Role: Cooperative or Confrontational?

Russia remains a key variable in this evolving equation. Its deepening military and economic ties with China—highlighted by joint military exercises, nuclear modernization programs, and shared diplomatic stances—are designed to counterbalance Western influence. Moscow’s strategic moves, including accelerating nuclear triad development and asserting sovereignty in Ukraine, aim to project strength and leverage its alliance with Beijing.

The Russia–China partnership complicates Western containment efforts, especially as Russia seeks to assert regional influence and expand its nuclear capabilities. The ongoing Ukraine conflict, coupled with Russia’s efforts to diversify alliances beyond the West, signals its intent to remain a significant actor capable of impacting global stability.

Gray-Zone Warfare and Technological Challenges

In this multipolar environment, gray-zone tactics—cyberattacks, disinformation campaigns, shadow fleets—are increasingly central to state strategies. China employs disinformation and shadow fleets to project influence, aiming to erode Western cohesion and sway regional politics. Russia continues its cyber operations and political interference activities, targeting Western infrastructure and institutions.

Recent revelations point to persistent vulnerabilities:

  • Research collaborations and shadow fleets facilitate technological leaks and espionage, raising concerns about the security of critical innovations.
  • Both China and Russia are deploying cyber weapons and disinformation campaigns to influence elections, destabilize governments, and weaken alliances.

Western nations are responding with enhanced safeguards, including:

  • Tightening export controls on dual-use technologies such as hypersonic weapons and AI.
  • Developing AI-driven surveillance systems to detect and counter cyber threats.
  • Strengthening intelligence sharing and establishing incident protocols to mitigate risks of escalation, especially in sensitive regions like Taiwan and the South China Sea.

Policy Responses and the Path Forward

Western policymakers are adopting a multi-pronged approach to manage escalating risks:

  • Technological safeguards: Implementing stricter export controls, especially on cutting-edge AI and missile technologies.
  • Defense investments: Upgrading missile defense systems and investing in counter-hypersonic capabilities supported by AI-enhanced early warning systems.
  • Diplomatic engagement: Maintaining open channels with China, Russia, and regional actors to prevent misunderstandings and miscalculations.
  • Economic resilience: Promoting diversification of critical supply chains and resource independence to reduce vulnerabilities.

These efforts aim to balance strategic restraint with readiness, ensuring stability in a rapidly evolving, tech-driven security environment.

Current Status and Implications

As 2026 progresses, the global order remains highly fluid. The fragile US–China stabilization offers limited breathing space for diplomatic maneuvers but does not eliminate the risk of escalation. Russia’s partnership with China and regional assertiveness complicate containment efforts, while gray-zone tactics continue to erode trust and stability.

The resilience of alliances, technological sovereignty, and diplomatic agility will be crucial in preventing escalation and fostering a stable, multipolar world. The ongoing technological arms race, resource battles, and shifting regional dynamics underscore the importance of strategic foresight and international cooperation.

Ultimately, navigating this complex landscape requires a delicate balance—one that emphasizes resilience, normative frameworks, and adaptive diplomacy—if the international community is to avoid slipping into conflict and instead foster a sustainable, multipolar order capable of managing the unprecedented challenges of 2026 and beyond.

Sources (27)
Updated Feb 28, 2026
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