Europe and China on the verge of a trade war

The imposition of US tariffs has once again escalated trade tensions between China and the EU, which have long been accompanied by mutual accusations and investigations. The main problem remains the impact of competing imports on national economies. 

Last month, the European Union announced that it would ban Chinese companies from participating in EU government tenders for the supply of medical equipment worth 60 billion euros or more per year. This provoked retaliatory measures from China – the introduction of restrictions on the import of these products. The situation was further aggravated by duties imposed by China on brandy from the EU, despite lengthy warnings from Brussels.

Experts point out that the conflicting economic interests of the parties only increase the differences. China is facing the problem of excess production capacity and is seeking to reorient exports to Europe, which is contrary to the interests of the EU, which is trying to protect its industry. 

The internal problems of the Chinese economy – the gap between production capacity and demand, slowing growth and declining demand in foreign markets – are also exacerbating the situation. Exports, which have long been the backbone of the economy, are now under pressure due to global trade tensions. All this creates additional risks for both sides.