A full-scale trade war between the European Union (EU) and China is becoming “unavoidable” if current trends persist, warns Jens Eskelund, chairman of the European Union Chamber of Commerce in China. Speaking in Brussels, Eskelund emphasized that China’s own policies are driving the escalation and rejected the notion that China is the “victim” in this trade dispute.
Eskelund’s comments come on the heels of Beijing imposing hefty tariffs on EU brandy imports, following the EU’s decision to implement punitive duties on Chinese-made electric vehicles (EVs). China has labeled the EU’s actions as “naked protectionism.” However, Eskelund urges China to consider the broader context, including Europe’s legitimate concerns about China’s economic policies.
According to Eskelund, the trade imbalance is growing, with Chinese imports to Europe steadily decreasing, while Chinese exports to Europe have been surging, fueled by deflation and weak domestic demand in China. These dynamics, he suggested, are contributing to a deteriorating trade relationship between the two economic giants.