The rise of the Asian giants has shifted the economic focus away from Europe. Superficially there seems to be a developing cooperation between them leading to increased globalization. China’s ability to exercise power by economic means is now visible to all. Huge infrastructure projects, funded by soft loans is a characteristic feature of Chinese diplomacy. The consolidation of strength in the South China Sea is seen by its neighbours as evidence of China’s aggressive territorial ambitions. The Trump Administration’s plan to play safe with China by avoiding ratcheting up tensions will cede great freedom to the latter in its pursuit of its goals. The US has shown little interest in prolonging the Asia strategy formulated by Barrack Obama. It remains to be seen how well China can perform the balancing act: maintaining cordial relations with both Europe and the US.