Global Trade War Warning: EU Prepares for Clash with China
The European Union is on the verge of a "phase of conflict" with China unless a deal is reached by October to address its widening trade deficit. Concerns over Chinese industrial overcapacity threaten European industries, prompting calls for a new defensive trade policy despite internal EU divisions on how to best manage relations with Beijing.The European Union is on the precipice of a significant “phase of conflict” with Beijing if a deal to curb its escalating trade deficit is not reached by the autumn, according to Manfred Weber, chairman of the European People's Party. This urgent warning comes as the EU's trade chief, Maroš Šefčovič, announced a target of October to finalize an agreement with China to address these trade imbalances. Brussels is increasingly concerned that Chinese industrial overcapacity is severely undercutting Europe's already struggling industries, prompting calls for tangible results and the preparation of new trade defence tools.
Weber emphasized the necessity of a fundamental shift in the EU's approach to China, advocating for a new level playing field where subsidies, which he argues distort free market economies, are not permitted. Europe is grappling with fears of a