The EU clearly benefits from stronger trade links—and without an attached financial cost, at least for now. China ’s Belt and Road Initiative , which aims to improve trade connectivity by upgrading transport infrastructure across Europe and Asia , could harm Europe if the focus swings too far toward free trade agreements ( FTAs ) rather than subsidies , according to a working paper from Bruegel . The paper modelled that all the top economic benefits from reducing transportation costs would be in Europe . However , if the Belt and Road Initiative then expanded into an FTA with the 63 countries involved , Europe 's trade would suffer limited harm and the chief beneficiaries would be Asian and non - western European countries .
China ’s Belt and Road Initiative , which aims to improve trade connectivity by upgrading transport infrastructure across Europe and Asia , could harm Europe if the focus swings too far toward free trade agreements ( FTAs ) rather than subsidies , according to a working paper from Bruegel . The paper modelled that all the top economic benefits from reducing transportation costs would be in Europe . However , if the Belt and Road Initiative then expanded into an FTA with the 63 countries involved , Europe 's trade would suffer limited harm and the chief beneficiaries would be Asian and non - western European countries .