Trade War Unlikely to Serve EU or China, Experts Say
Source: DairyNews.today
At an event in Shanghai, EU Ambassador to China Jorge Toledo emphasized that the European Union has no desire for a trade war with Beijing.
However, he noted that five years of discussions have seen little progress on key issues, particularly around market access for European medical device companies in China. “We don’t want a trade war. We just want transparency and a level playing field,” Toledo stated, speaking during the 30th-anniversary event for the China Europe International Business School.
Trade tensions between the EU and China have heightened recently. The EU launched an investigation into subsidies on Chinese electric vehicles (EVs), prompting Beijing to retaliate with its own inquiries into European pork and dairy exports, along with curbing brandy imports. The EU’s recent decision to impose countervailing duties on Chinese EV imports for five years marks a significant move in this escalating trade dynamic.
According to Zhao Junjie, a senior research fellow at the Institute of European Studies at the Chinese Academy of Social Sciences, while there are clear signs of trade protectionism post-pandemic, there is still strong momentum in areas like economic cooperation, technology, cultural exchange, and education. These sectors, Zhao says, help stabilize the relationship. “The China-EU relationship is much like a married couple wrangling with each other. Both recognize they should work out their issues together, as both would suffer from a separation,” he explained.
The EU faces further strategic decisions following the 2024 re-election of Donald Trump as U.S. president. Former Austrian Chancellor Christian Kern, speaking in Beijing, urged the EU to address energy-related issues as a priority, suggesting that cooperation with China could be beneficial, particularly in areas like new energy vehicle batteries and wind power. Kern noted that China’s rapid industrial scaling capabilities could complement Europe’s position in renewable sectors.
Zhao and fellow expert Yan highlighted the importance of preventing EU-China relations from shifting toward confrontation. Yan underscored that China’s retaliatory measures are not limited to EVs and could extend to sectors like wind turbines, solar energy, and medical equipment. Both experts called for more robust communication channels to avoid escalation and misunderstandings.
European leaders have been actively engaging with China, with several high-profile visits aimed at reinforcing dialogue. Yan noted, “These visits are essential. Open communication can help prevent misjudgments.” Zhao added that while China will defend its interests, countermeasures should be precise and tailored, avoiding a broad-brush approach.
As the EU and China navigate this complex landscape, experts agree that a trade war would be counterproductive, with open dialogue seen as the path forward for achieving mutual economic stability.
Trade tensions between the EU and China have heightened recently. The EU launched an investigation into subsidies on Chinese electric vehicles (EVs), prompting Beijing to retaliate with its own inquiries into European pork and dairy exports, along with curbing brandy imports. The EU’s recent decision to impose countervailing duties on Chinese EV imports for five years marks a significant move in this escalating trade dynamic.
According to Zhao Junjie, a senior research fellow at the Institute of European Studies at the Chinese Academy of Social Sciences, while there are clear signs of trade protectionism post-pandemic, there is still strong momentum in areas like economic cooperation, technology, cultural exchange, and education. These sectors, Zhao says, help stabilize the relationship. “The China-EU relationship is much like a married couple wrangling with each other. Both recognize they should work out their issues together, as both would suffer from a separation,” he explained.
The EU faces further strategic decisions following the 2024 re-election of Donald Trump as U.S. president. Former Austrian Chancellor Christian Kern, speaking in Beijing, urged the EU to address energy-related issues as a priority, suggesting that cooperation with China could be beneficial, particularly in areas like new energy vehicle batteries and wind power. Kern noted that China’s rapid industrial scaling capabilities could complement Europe’s position in renewable sectors.
Zhao and fellow expert Yan highlighted the importance of preventing EU-China relations from shifting toward confrontation. Yan underscored that China’s retaliatory measures are not limited to EVs and could extend to sectors like wind turbines, solar energy, and medical equipment. Both experts called for more robust communication channels to avoid escalation and misunderstandings.
European leaders have been actively engaging with China, with several high-profile visits aimed at reinforcing dialogue. Yan noted, “These visits are essential. Open communication can help prevent misjudgments.” Zhao added that while China will defend its interests, countermeasures should be precise and tailored, avoiding a broad-brush approach.
As the EU and China navigate this complex landscape, experts agree that a trade war would be counterproductive, with open dialogue seen as the path forward for achieving mutual economic stability.
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