In the early years of this century, there were suggestions that the European Union could play the role of a “quiet superpower,” and even speculation that Brussels might become a hegemonic rival to the United States. Now, with the rise of China and talk of a new Cold War brewing between Washington and Beijing, the EU’s place in the world is looking dramatically less imposing.

For some experts and observers, the EU continues to be a “civilian power,” given its nonmilitary capabilities, or a “normative power,” referring to its historical role in helping to shape global norms on human rights and governance. A more apt term, popularized by Chad Damro at the University of Edinburgh, is that of a “market power,” due to the EU’s ability to influence foreign governments not through force or the threat of violence, but through inducements of better trade. ...