Europe could prosper as China’s trade ally rather than adversary

AI Summary

The European Commission signals intent to counter China's subsidized exports such as electric vehicles, solar panels, and batteries, marking a potential trade war. The situation is compared to historic trade conflicts between Europe and Japan, highlighting significant trade tension dynamics.

The European Commission has been clearly signalling its intention to wage a trade war against China. Brussels’ intent to counter the so-called China shock 2.0 – the wave of subsidised Chinese exports such as electric vehicles (EVs), solar panels and batteries – is no longer merely a verbal threat but appears to be an imminent decision. Comparing current trade tensions between the European Union and China with the trade conflict between Europe and Japan in the 1970s and 1980s reveals striking...