China’s International Relations Sour Over Trade Talks with Europe

China’s trade talks with the Europe Union took a turn for the worse as tensions escalated over key issues. China remains sensitive about their involvement in the start of the coronavirus and moves against Hong Kong. European leaders have distanced themselves from the China and America trade talks but have come to the table due to fears of missing out. There is no doubt that China is a valuable trading partner, but world leaders are only too aware of their shortcomings. The EU is China’s largest trading partner and although threatening statements have been shared by both sides it is unlikely that either party would want to risk their economic future.

America and the EU share many of the same complaints about China but they are trying to find a less aggressive method to progress than Trump. China has historically limited market access for European companies across a range of industries and demands a one-way technology transfer. The EU is also concerned that China’s industrial giants are receiving government subsidies. China has responded and said they are unhappy with the tariffs imposed on these companies in response to the fears.

Since the phase one US-China trade deal was signed, the EU has noticed that China is opting to use American companies. The EU appears to be worried that China’s increased dealings with the US could lead to diminished purchases from European firms.  

China and the EU make up one third of global GDP so trade tensions could have huge ramifications of the global economy. The EU appears to be more demanding while China appears to be holding all the cards. However, the sharks (US, UK, Australia) seem to be circling China on similar key issues.