European identity in the face of China and the US

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This week, I want to dive into a topic that’s absolutely crucial for us Europeans. It’s something that keeps popping up whenever I travel or chat with entrepreneurs and investors who are just getting their feet wet on our continent: European sovereignty.

I’ve touched on this before in one of my earlier newsletters, but let’s be real - China and the U.S. have each carved out their own path to dominate the global economic battlefield. Meanwhile, Europe has been sitting back, reacting instead of acting, with no real game plan. So, how can we even dream of taking the lead when the cards seem already stacked against us?

Let’s break it down: China and the U.S. are deeply connected and interdependent, whether it’s through balance of payments or holding each other’s government bonds. To secure the top spot, these two giants have divided the world between them. The Chinese bloc has become the world’s factory, churning out everything from cars to clothes to phones. On the other side, the U.S. leads the charge in tech development with their SaaS, AI models, ERP systems…

From a European standpoint, this means that to produce and stay competitive, we have to look to China. And to get our hands on cutting-edge tech, it’s the U.S. we have to turn to. The result? A brain drain and capital flight that’s hard to ignore.

So, how do we build a strong European identity? What’s the unique factor that can unite and set us apart? What’s our true-added value?

The answer isn’t rocket science. As Arthur Mensch (from Mistral AI) and independent investor David Baverez have pointed out, Europe is that part of the world where life is most enjoyable, where people and the environment are front and center. That’s a huge asset, and as Victor Hugo famously said, “The first equality is equity.”

Maybe it’s time, like Descartes, Spinoza, or Locke did in their day with the Enlightenment, to reinvent the way we think, to impose our way of doing things, just like the other blocs have done.

To do that, we just need to focus on two key but tricky areas : the carbon market and intergenerational relationships.

China has an incredible ability to scale up its industries, thanks to heavy subsidies for its factories. The U.S., on the other hand, excels at financing, which lets them dominate the platform market. And Europe? We’ve got the best low environmental impact infrastructure, but our know-how is slipping away due to a generational disconnect, driven by ever-accelerating innovation.

Maybe it’s time to pull back a little, with a genuine import tax that accounts for the carbon impact of foreign production. That would give our homegrown entrepreneurs a fighting chance and put the squeeze on those countries that are dragging their feet on reducing their impact.

Let’s build pride around intergenerational relationships and make them easier, whether it’s grandparents helping kids learn to read and write, or students supporting seniors in their daily lives. As Simone de Beauvoir wisely said, “A society is judged by the way it treats its elderly.”

We’ve always had the keys to independence; what we’ve lost is the courage to use them. And this isn’t just about governance - it’s about guts, it’s about leadership.

On that note, I’ll leave you to enjoy the gorgeous sunset that inspired these thoughts, and I hope you’re all having an amazing summer!

If you have any other questions, the comment section is there for you. Keep pushing – you’re going to crush it. Catch you in the next article!