In the wake of the “trade war” between the US and China there had been some speculation that relations between the Chinese and Europeans would deepen and develop but recently it has become evident the parties remain very far apart.
To be frank, the EU has been unhappy with Chinese trade practices for years and have been seeking ways to reduce the trade deficit. On the other hand, there has been considerable investment in China and the supply chain in Europe remains very closely tied to China.
There are several other issues that divide. The EU has called on China to be more aggressive when it comes to meeting climate goals. China had issued some very vague assurances on reducing greenhouse gas but there has been limited follow up as much of China’s contribution is from industrial operations and utilities and China has no desire to put additional pressure on its manufacturing community is light of all the tariff conversation.
This is not the only area of disagreement. There are still many trade related disputes as China has been accused of dumping product on the European market at the same time that it erects barriers to European exports. Another area of dispute is the Ukraine war as China supports Russia with everything from weapons to cash. The Chinese position is that Russia is more of an ally than Europe. This is obviously true but China needs Europe now more than ever and has to be cautious as regards ignoring the needs and wants of the EU. CK
Courtesy Armada Corporate Intelligence – Chris Kuehl