BRUSSELS: In an effort to prevent a trade war, EU trade chief Maros Sefcovic will go to Beijing on Thursday for two days of crucial meetings with Chinese officials. In order to protect companies from what it sees as unfair competition in vital industries like automobiles, the European Union has strengthened its position against Beijing.
Leaders and observers in Europe are increasingly warning of a “China Shock 2.0,” a term used to characterise Chinese companies’ transition to higher-tech manufacturing, which is endangering numerous established EU industries.
The first shock occurred in the early 2000s when manufacturers worldwide, including those in Europe, were negatively impacted by an abundance of low-tech, inexpensive exports from China. Since June, negotiations between EU and Chinese representatives have been ongoing to resolve Brussels’ concerns on the existing trade deficit.
Beijing has pledged to strike against any actions that target China, despite the EU’s parallel preparations to strengthen its trade defence arsenal. Sefcovic’s warning that the EU wanted “tangible results by October” from the process increased the stakes for this week’s summertime meetings.
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