Julianne Smith and Torrey Taussig
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ronmental standards, use transparent contracts, and focus on ¿nancial
sustainability in its investment and infrastructure projects by combin-
ing their resources and expertise to oer their own high-quality
investments to emerging-market countries, creating a race to the top
among development projects. Japan’s connectivity strategy, launched
by Prime Minister Shinzo Abe soon after China introduced the ,
oers a good model. The associated $110 billion fund has boosted
Japan’s ability to ¿nance high-quality and ¿nancially sustainable
development projects, at times in cooperation with China, i it abides
by Japan’s principles. What the Japanese seem to have learned faster
than their transatlantic counterparts is that states will follow China’s
lead i it is the only player in the game, but when other countries com-
pete, the developing world gets better options.ALL TOGETHER NOW
These are tough times for the ¤. Brexit, illiberal triumphs across
Europe, a resurgent Russia, and deteriorating transatlantic ties have
sent European leaders scrambling to preserve both the European proj-
ect and the international system. That has left them with less time and
energy to focus on China. Although some countries are developing
responses to China’s growing economic engagement with and political
inÇuence in Europe, too many are ignoring the challenge from China.
During the Cold War, Europe was a battle¿eld for ideological com-
petition between the United States and the Soviet Union. It had little
say in the outcome. Today, Europe has the ability to prevent a new Cold
War and promote a more stable and prosperous future. I that is to hap-
pen, Germany will have to take the lead. It should urge the continent to
develop a coherent strategy that draws on Europe’s unique strengths
and liberal democratic values. Only then can the ¤ work with the
United States to revamp a tired international system—from updating
the global trading architecture to managing new and disruptive tech-
nologies—and protect the liberal order’s open, democratic nature from
Chinese inÇuence. I the democratic world cannot rise to the task, China
will remake the system as it sees ¿t. Europe will not like the result.∂