EU Strikes Trade Deal with U.S. Amidst Rising Tensions with China
The European Union has reached a trade agreement with the United States, averting the threat of a 30 percent tariff on most EU goods set to take effect on August 1. This development follows European Commission President Ursula von der Leyen’s recent visit to Beijing, wherein relations were notably strained rather than celebratory, reports 24brussels.
After a one-day summit marking the 50th anniversary of EU-China diplomatic relations, von der Leyen remarked that the bloc’s relationship with China has attained an “inflection point.” She emphasized the need for a more balanced trade dynamic, underscoring that the EU’s markets may not remain accessible to Chinese exports without significant efforts from Beijing to rectify the trading relationship.
In an effort to strengthen ties with the White House, von der Leyen has adopted a firmer stance on Beijing in recent months, prompting warnings from China about potential retaliation against nations that form trade agreements with the U.S.
Anticipations for tangible outcomes regarding trade from the EU-China summit were muted, with EU officials acknowledging that the mere occurrence of the meeting was a milestone given the prevailing tensions. Preceding the summit, the EU imposed sanctions on two Chinese banks amid their ongoing restrictions connected to Russia, which elicited a strong reaction from Beijing, denouncing the move as “egregious.”
Ultimately, the EU and China established a framework aimed at expediting permits for raw materials, addressing concerns expressed by numerous European businesses regarding China’s stringent export controls over rare earth minerals. However, significant issues, including disputes over the EU’s anti-subsidy measures on Chinese electric vehicles and access to medical device procurement processes, remain unresolved.
