On Tuesday, German Chancellor Angela Merkel called on the European Union to avoid taking sides in the new U.S.-China Cold War. That perspective is Merkel’s right as the democratic leader of Europe’s largest economy. But considering the immense threat China poses to the U.S.-led international order, it is President Biden’s right and responsibility to impose a price on EU governments that choose Chinese gold over critical American interests.

There is a lot more at stake here than Merkel’s rhetoric. Front and center is a new EU-China trade deal that EU leaders agreed to in late December. That agreement will consolidate China’s economic leverage over Europe and undermine Biden’s stated interest in building an alliance of democracies to confront China’s aggressive international policies. China recognizes as much and is celebrating.