China is stepping up its retaliation, what will happen? – New Tribune

Industrial war between EU and China It is getting more and more intense, and the main battlefield is Electric car. This booming industry is fueling economic tensions between the two countries. On one hand, the EU seeks to protect its automotive industry in the face of unfair competition from China. On the other hand, Beijing is pessimistic about European protectionist measures that threaten its export ambitions. This months-long confrontation has just reached a new milestone as China announced retaliatory measures against iconic European products.

Growing business deadlock

The situation was triggered by the EU’s decision to maintain a surcharge on electric vehicles imported from China for five years. These taxes can reach 36%, What is it designed to combat? Brussels The move is aimed at curbing Chinese carmakers’ exports, taking into account unfair business practices, particularly state subsidies that allow Chinese manufacturers to keep prices artificially low. The measure is not limited to Chinese brands but also includes cars produced in China by foreign manufacturers, such as Tesla, which has a large factory in Shanghai.

The reaction is Beijing Soon after, China’s Ministry of Commerce announced the launch of an anti-dumping investigation into a number of European dairy products, including fresh cheese, curd and blue cheese. The investigation is likely to last until 18 monthsfocusing on subsidies granted within this framework EU Common Agricultural Policy (CAP). This is a severe blow to the European agri-food industry, where one of its flagship products is threatened in the growing Chinese market.

Multi-faceted upgrades

The dairy investigation is just the latest in a series of retaliatory measures by China. Beijing has launched similar investigations into European spirits this year, with a particular focus on French cognac, as well as pork and pork products imported from a number of countries. The European Union, including Spain, France, the Netherlands and Denmark.

This diversification of commercial fronts reflects China’s strategy to exert maximum pressure on the EU. By targeting the iconic products of different member states, China seeks to divide the European front and spark internal debate on the relevance of anti-China measures. Given the importance of agricultural exports to many European countries, this strategy may prove effective.

Redefining China-EU relations?

The current escalation raises questions about the future of trade relations between the EU and China. Beyond the directly concerned sectors, these tensions could also affect mutual trust and undermine cooperation efforts in other areas, such as combating climate change or global financial stability.

The challenge for the EU is to find a balance between protecting its strategic industries and maintaining a constructive economic relationship with its second-largest trading partner. On the Chinese side, the question is how far Beijing is prepared to go in this trade war, risking alienating a market key to its economic ambitions.

Against this tense backdrop, one thing is certain: the coming months will be crucial for the future of EU-China relations. Both sides must demonstrate diplomacy and flexibility to avoid a spiral of retaliation that will only lead to failure. The stakes are high: this is tantamount to redefining the rules of the global business game in the era of energy and digital transformation.