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Asharq Al-Awsat
Asharq Al-Awsat
World
Asharq Al-Awsat

Europe in Crossfire of US-China Economic Rivalry

FILE PHOTO: Chinese and US flags flutter in Shanghai, China July 30, 2019. REUTERS/Aly Song

The economic confrontation between the United States and China has put Europe in the crossfire, with Washington's plan to boost green industries threatening to cause collateral damage to a key ally.

The United States has adopted the Inflation Reduction Act (IRA), which contains $370 billion in sweeping investments, subsidies and tax cuts to reduce greenhouse gas emissions, making it the largest-ever US program to combat climate change, AFP said.

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