The age of American global dominance is ending. In recent years, risky economic and foreign policies have steadily eroded the power structure in place since the Cold War. And now, staggering under a huge burden of debt, the country must make some tough choices--or watch its creditors walk away....

The paper examines the question how the EU and other countries who are in a similar position of "being caught between the US and China", such as South Korea, will shape their relationship with China and how their strategies complement, or contradict, the policies pursued by the US under the...