The EU will ‘pull its punches’ on China despite growing trade war talk: analysts

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Analysts expect the European Union to avoid a full-scale trade confrontation with China, citing divisions among member states and concern about Chinese retaliation. The assessment comes amid calls in Europe for stronger measures to protect domestic producers from Chinese competition.

The European Union is likely to avoid a full-blown trade confrontation with China due to internal divisions in the bloc and fear of retaliation, according to a prominent research firm. The projection comes amid speculation that the two sides are on the brink of a trade war, with European policymakers raising the alarm about a looming “China shock 2.0” and pushing for stronger measures to protect domestic producers from Chinese competition. But the bloc would “continue to pull its punches” in any...