China and Russia will benefit from a rupture between U.S. and Europe: Ambassador Nicholas Burns

Watch on YouTube ↗  |  January 21, 2026 at 18:57  |  5:41  |  CNBC
Speakers
Nicholas Burns — Harvard University professor and former U.S. Ambassador to China
Fred Kemp — CEO of the Atlantic Council

Summary

Fred Kempe and Nicholas Burns discuss the geopolitical fallout from U.S. pressure on Denmark over Greenland and related tariff threats. They argue Europe is undergoing shock therapy and may increase defense spending, while a rupture with the U.S. would mainly benefit China and Russia. Burns also says China's effort to deepen economic ties with Europe is unlikely in the short term because Europe views China's support for Russia's defense industry as existential.

  • U.S. pressure over Greenland and tariffs has strained NATO and U.S.-Europe relations.
  • Fred Kempe says Europe is being forced to provide more for its own defense, which could strengthen NATO.
  • The EU may consider tariffs, sanctions, or anti-coercion measures against the U.S.
  • Nicholas Burns says China and Russia would benefit from a U.S.-Europe rupture.
  • Burns is skeptical China can make economic inroads with Europe in 2026.
  • He cites China's role as a major microelectronics supplier to Russia's defense industrial base.
  • Burns says Trump's withdrawal of the military force threat is not convincing to Europeans.
Ideas
Fred Kemp CEO of the Atlantic Council 1:41
Europe must spend more on defense.
U.S. pressure over Greenland and tariffs is acting as shock therapy for Europe, forcing Europeans to recognize they must provide more for their own defense. Kempe says this increased defense effort could be good for Europe and NATO, implying a tailwind for European defense spending.
Nicholas Burns Harvard University professor and former U.S. Ambassador to China 3:42
China and Russia benefit from US-Europe rupture.
If the U.S.-Europe relationship suffers a rupture rather than a managed transition, China and Russia are the geopolitical beneficiaries. Burns argues they are likely staying quiet to avoid interrupting the U.S. damaging its relationship with Europe, making them important countries to watch as the split develops.
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This CNBC video, published January 21, 2026, features Fred Kemp, Nicholas Burns discussing European Defense, FXI, ERUS. 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Fred Kemp, Nicholas Burns  · Tickers: European Defense, FXI, ERUS