The primary worry is that they'll be the stronger party in future diplomatic/political/economic confrontations.
So? It will also give Euros an opportunity to use China to play off the US.
It's a double edged sword, but to get back to the original point. What difference will China's military improvements (which will still leave them short of the US) have on such negotiations?
Chinese economic power will have much more influence, and there's nothing we can do about that.
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