China EU Chamber of Commerce Chairman warns of possible full-blown trade war between Europe and China
China EU Chamber of Commerce Chairman, Jens Eskelund, warned on Wednesday (April 17) that with the rise of protectionism, Europe and China could potentially trigger a full-blown trade war.
Eskelund, speaking at the South China Branch meeting of China EU Chamber of Commerce in Guangzhou, described the current trade situation between Europe and China as a “slow-motion train wreck.” He said, “The train wreck has not happened yet, but we can see that if we continue in the current direction, it will happen.”
Eskelund believes that a full-scale trade war between Europe and China is imminent, and both sides urgently need to engage in dialogue.
On Tuesday (April 17), German Chancellor Olaf Scholz concluded his three-day visit to China during which he held talks with Chinese Communist Party leader Xi Jinping. During the meeting, Scholz conveyed Europe’s concerns about China’s investment policies and pushed for improvements in market access.
During the German delegation’s visit to China, the German Federal Constitutional Protection Agency required members of the delegation to maintain “the highest level of vigilance” and maintain “extreme distrust.” To prevent Chinese espionage, Germany has implemented a series of stringent measures, including disposing of electronic devices taken to China upon their return.
In addition, the EU has launched several investigations into whether Chinese manufacturers are dumping subsidized goods, such as electric cars, into their markets. The investigations include whether punitive tariffs should be imposed to protect EU producers from the impact of cheap Chinese imports of electric vehicles.
Industry associations in China believe that the EU’s investigation into electric vehicles is detrimental to Chinese manufacturers. According to Reuters, Shi Yonghong, a member of the Chinese Machinery and Electronic Products Import and Export Chamber of Commerce’s Communist Party Committee and Vice Chairman, expressed concerns that the results may be “distorted and not objective.”
Last Friday, Chinese Minister of Commerce Wang Wentao accused Brussels of adopting trade protectionism.
US Treasury Secretary Janet Yellen also visited China earlier this month, and on Tuesday, she stated that China’s massive investments in advanced manufacturing of clean energy products have led to an unfair competitive environment. Overproduction of electric vehicles, batteries, solar panels, and other products could potentially bankrupt companies in the US and other countries.
责任编辑：任子君