Trade tensions between China and the EU: risks of a global trade war

The trade tensions between China and the European Union have reached a new level, becoming the focus of international attention. What was initially described as trade skirmishes has evolved into a situation that many fear could lead to a full-blown trade war. The European Commission has taken strong measures, imposing tariffs on electric vehicles manufactured in China, while this country has responded with an anti-dumping investigation against European pork imports. These actions reflect an attempt by the EU to rebalance trade in the face of what it considers massive subsidies from China that distort competition. The trade balance between the two parties has traditionally been unequal, reaching a deficit of nearly 400 billion in 2022, leading the European Union to seek to reduce its dependence on China in key sectors for the ecological and digital transition. Talks between both parties have intensified, with the EU adopting a firm yet respectful stance, and China expressing its dissatisfaction with what it considers protectionist measures. Germany, as one of the countries most affected by a potential trade escalation, has played a prominent role in the negotiations, showing concern about the potential impacts on the economy and German automakers in China. Experts warn that a trade war between China and the EU would have serious consequences for both parties, as key sectors such as the automotive industry and aviation would be affected. China, on its part, has hinted at the possibility of imposing trade barriers on other sectors, such as luxury goods, which could harm countries like Italy and France. China's overcapacity in some sectors and its focus on exports to sustain its economy have become points of contention with its trading partners. The European Union has initiated investigations in several sectors to counter what it considers unfair trade practices by China, and has tools to defend itself in case of escalation. On the other hand, some voices advocate for cooperation and the establishment of joint ventures between Chinese and European companies as a way to overcome trade differences and promote the ecological transition jointly. The possibility of Chinese companies manufacturing in Europe, respecting market conditions and European labor standards, is presented as an alternative to promote prosperity and equity in international trade. In a global context of increasing protectionism, the tensions between China and the European Union reflect the economic and geopolitical challenges they face in an interconnected world. Diplomacy and dialogue remain crucial to avoid an escalation that could have negative consequences for both parties and for global economic stability.