Emboldened by hybrid car deal, Europe coalesces around tougher China stance

AI Summary

The European Union is preparing a tougher response to Chinese trade practices, despite a recent deal with Beijing on hybrid cars. EU policymakers say dialogue will continue alongside stronger measures, encouraged by what they see as the effectiveness of trade threats.

The EU’s surprise deal with China on hybrid cars last week was supposed to ease the pressure on Beijing. Instead, Brussels is preparing to intensify its crackdown on Chinese trade practices, emboldened by the discovery that its threats are finally delivering results. Now, those driving trade policy for the bloc believe they have landed on a two-track formula. Intensive dialogue is seen to have yielded results and will continue. But so too will the European Union’s efforts to counter what they...