The European Union’s Role in the US-China Trade War

The European Union’s Role in the US-China Trade War

The European Union (EU) has been steadily increasing its trade with China, even as the United States (US) has been engaged in a trade war with the country. This has allowed the EU to profit from the US-China trade war by positioning itself as a friendlier trading partner to China.

EU:s growing export to China

The European Union's Role in the US-China Trade WarThe EU’s exports to China have increased by 66 percent since the start of the trade war, while US exports have grown just 21 percent. EU exports of strategically important products such as machinery, electronics, semiconductors, and aerospace equipment have dramatically increased over the past1 decade.

This trend is likely to continue in the future, as the EU and China are negotiating a new investment agreement. If this agreement is reached, it will give the EU even greater access to the Chinese market.

The US government has expressed concern about the EU’s growing trade with China. The Trump administration has warned the EU that it needs to stop taking advantage of the US-China trade conflict and start taking a more active role as a true ally.

General Economics Relationships

The US and China are major trading partners. China is the US’s largest trading partner, and the US is China’s second-largest trading partner. However, the two countries also have a number of economic disputes. These disputes include the trade war, intellectual property theft, and currency manipulation.

The EU is the world’s third-largest economy. It has a close economic relationship with both the US and China. The EU is a major trading partner of both the US and China. However, the EU’s trade with China is growing faster than its trade with the US.

Downturn in the EU-US relation?

One arena for battle between The EU and the US is the large tech platforms of the magnificent seven, like Meta and Microsoft. The EU digital chief Henna Virkkunen says that the EU will fully enforce its rules governing social media and other large online platforms, and has not delayed any cases against US Big Tech. Virkkunen said that the Digital Markets Act and the Digital Services Act are powerful tools for ensuring a fair and safe online environment, and that the DSA protects freedom of speech. In contrast, Meta chief Mark Zuckerberg says that Europe has too many laws “institutionalising censorship,” and called on US President-elect Donald Trump to stop the EU from fining U.S. tech firms. This is only one of the stages that is set for a potential downturn in the EU-US relation.

Sources: ITIF and Reuters

European trends

 

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