EU-China Trade Tensions Rise

A frenzied fortnight of EU policymaking on China kicked off on Tuesday, amid signs that big member states may be willing to take a tougher stance on trade despite huge pressure from Beijing.

Beijing’s commerce vice-minister, Ling Ji, was set to meet with new EU trade director Ditte Juul Jorgensen in Brussels and have talks with Chinese businesses in the Belgian capital before heading to forums in Berlin and Dusseldorf.

At the same time, EU diplomats began preparations for next week’s blockbuster summit, where the 27 members will decide on the future direction of the European Union’s China policy.

The debate has reached fever pitch. Threats continue to roll in from Beijing, which has pledged to counter various EU moves to reduce Chinese firms’ market access, while sources in Brussels are increasingly convinced that a trade war between the two sides is on the horizon.

While the European Commission is determined to defuse tension by ramping up engagement with China, expectations are low among some of those involved that Beijing is willing to give even an inch on long-standing EU demands to rein in its trade and industrial policies.

Instead, there is frustration that Chinese officials continue to ignore explanations from Brussels that its policies are pro-Europe – aimed at shoring up its own manufacturing resilience – rather than anti-China.