A sinking ship? Why the EU and China could be heading for a trade war
The European Union and China are at risk of entering a trade war due to increasing economic tensions and protectionist measures from both sides. The EU has launched investigations into Chinese electric vehicle exports, suspecting unfair subsidies that distort competition. China has retaliated with its own probes into European agricultural and tech imports, escalating the standoff.
- ▪The EU is investigating Chinese electric vehicle manufacturers for receiving state subsidies that could give them an unfair market advantage.
- ▪China has responded by launching anti-subsidy investigations into European exports, including pork and dairy products.
- ▪Both economies are increasingly using trade tools to protect domestic industries amid growing geopolitical and economic friction.
- ▪The outcome of these investigations could lead to tariffs or other trade barriers, affecting global supply chains.
- ▪Analysts warn that a full-scale trade war between the EU and China could harm global economic stability and inflation recovery efforts.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at South China Morning Post.