Are the EU and China heading for a trade war?
Summary
The European Union's growing trade deficit with China has led to protective measures and rising fears of a trade war, as both sides consider measures and countermeasures amid strained relations.
Key Points
- The European Union's trade deficit with China has become unsustainable, reaching 31.9 billion euros in April.
- The EU is implementing protective measures against Chinese products like electric vehicles and scrutinizing Chinese firms like Huawei.
- China warns it could retaliate against EU protectionist policies but seeks dialogue to manage the trade tensions.
- Both the EU and China have a strong interest in avoiding a trade war due to economic costs and market access concerns.
