The head of the European People’s Party, Manfred Weber, has raised alarms about a potential trade war with China, urging the EU to adopt a more assertive stance. With a staggering trade deficit nearing one billion euros daily, Weber warns that without decisive action, European industries could face crippling consequences from Chinese overproduction and low-priced exports.
As the EU prepares for a summit on June 18, member states, particularly France, are advocating for a tougher approach to Beijing. This shift comes amid concerns that current trade dynamics are unsustainable, threatening high-quality jobs and the industrial base of Europe. The European Commission has acknowledged the need for a reset in its relationship with China.
Weber suggests that the EU should leverage its trade policy tools, such as tariffs on Chinese electric vehicles, to ensure fair competition. However, this strategy carries risks, as China could retaliate by restricting exports of critical materials, impacting European manufacturing, especially in Germany.
The situation highlights the delicate balance Europe must maintain in its economic relationship with China. While the EU holds significant leverage due to its single market, the potential fallout from a trade war could disrupt existing trade agreements and exacerbate economic vulnerabilities across the continent.
Source: Euronews
