Global Markets
Home›Global Markets›Trade & Tariffs›EU officials step up engagement with China while prepa…
EU officials step up engagement with China while preparing retaliation tools
The SCMP says the EU is building leverage and credible retaliatory capacity as parts of the bloc are already hemorrhaging jobs amid China-related trade tensions.
As trade tensions with China intensify, European Union officials are increasing engagement with Beijing to find an off-ramp, while also quietly preparing for the possibility of a wider trade war, according to SCMP Economy.
The outlet reports Brussels is focused on preventing deindustrialization in the bloc’s manufacturing heartlands, citing fears of another “China Shock 2.0.”
SCMP Economy adds that resilience-building and de-risking plans now include deterrents and “credible retaliatory tools” that would allow the EU to respond if China uses trade coercively.
The article also contrasts the EU approach with past rhetoric from US President Donald Trump, noting his 2018 comment that trade wars are “good, and easy to win.”