The EU is looking to strengthen its hand in trade negotiations with China, after European capitals recently secured a cap on Beijing's hybrid vehicle imports. Analysts argue the bloc is finally developing the "backbone" to address China's large trade surplus, with one economist writing in The Wire China that Europe has the tools to do so. However, a Chatham House expert argued in Foreign Policy that even an "impressive collection" of trade instruments means little without the wherewithal to use them. Former UK Prime Minister Rishi Sunak, writing in The Times, called for a "coalition of countries" to counter what he described as the "Chinese juggernaut," warning that otherwise Beijing "will succeed in creating a world in which we are all dependent on China while China depends on no one."
EU looks to strengthen hand in trade talks with China as analysts debate its resolve
Sunak urges Western coalition to counter the 'Chinese juggernaut'
Analysis
Why This Matters
- The EU-China trade relationship affects global supply chains, market access and the price of everything from cars to manufactured goods.
- How Europe wields its trade tools could set a precedent for Western economies responding to state-subsidised competition.
- Sunak's call signals growing political pressure for a coordinated Western strategy on China, which would reshape trade policy beyond Europe.
Background
EU-China economic relations have been strained for years by a large trade surplus in China's favour and by European concerns over state subsidies to Chinese industries. The recently agreed cap on Chinese hybrid vehicle imports is one example of Europe pushing back, but it is part of a broader debate over how far the bloc should go in confronting China's economic power. The discussion among analysts reflects differing views on whether Europe has the resolve to match its rhetoric with action.
Key Perspectives
European analysts: An economist writing in The Wire China argues the EU is finally showing the backbone and has the tools to challenge China's trade surplus. Chatham House expert: The same collection of trade instruments means little unless Europe has the political will to use them, raising doubt about whether the EU will follow through. Rishi Sunak: The former UK prime minister wants a coalition of countries to counter China's influence, warning that inaction risks creating widespread dependency on Beijing while China depends on no one.
What to Watch
- Whether the EU moves beyond hybrids and deploys broader trade measures against Chinese imports.
- Beijing's response, including any retaliation against European industries or exports.
- Whether other countries, including the UK and the United States, join Sunak's proposed coalition and coordinate their approach to China.
Sources
Checked
6 claims in this story checked against 1 source: 6 supported.
Show each claim
- SupportedEU looks to strengthen hand in trade talks with China as analysts debate its resolveSemafor: “EU looks to strengthen position in trade talks with China. ... analysts argued... But even an 'impressive collection'...”
- SupportedSunak urges Western coalition to counter the 'Chinese juggernaut'Semafor: “Former UK Prime Minister Rishi Sunak called for 'a coalition of countries' to counter 'the Chinese juggernaut,'”
- SupportedThe EU is seeking to strengthen its position in trade negotiations with China after European capitals recently won a cap on Beijing's hybrid vehicle importsSemafor: “European capitals, having recently won a cap on Beijing’s hybrid vehicle imports”
- SupportedAnalysts argue the bloc is finally developing the 'backbone' to address China's large trade surplus, with one economist writing in The Wire China that Europe has the tools to do so.Semafor: “analysts argued... finally developing 'the backbone' to battle China’s massive trade surplus and have the tools to do so, an economist wrote in The Wire China”
- SupportedA Chatham House expert argued in Foreign Policy that even an 'impressive collection' of trade instruments means little without the wherewithal to use them.Semafor: “a Chatham House expert argued in Foreign Policy that even an 'impressive collection' of trade instruments means little without the wherewithal to use them.”
- SupportedFormer UK Prime Minister Rishi Sunak, writing in The Times, called for a 'coalition of countries' to counter what he described as the 'Chinese juggernaut,' warning that otherwise Beijing 'will succeed in creating a world in which we are all dependent on China while China depends on no one.'Semafor: “Former UK Prime Minister Rishi Sunak called for 'a coalition of countries' to counter 'the Chinese juggernaut,' warning in The Times that without one, Beijing 'will succeed in creating a world in which we are all dependent on China while China depends on no one.'”
Correction
An earlier version attributed the phrase “impressive collection” of trade tools to an economist writing in The Wire China. It was used by a Chatham House expert writing in Foreign Policy, who said such tools mean little without the wherewithal to use them.