China must "adapt its behaviour" to solve an escalating tariff row with Europe, EU chief Charles Michel told AFP Friday, warning of the dangers of the dispute escalating into a full-blown trade war.

The European Council president met Chinese Premier Li Qiang on the margins of a Southeast Asian summit in Laos as Beijing and the European Union impose tit-for-tat penalties on each other’s imports in a row about subsidies and protectionism.

Michel said in an interview with AFP that after his “frank and candid” talks with Li, he hoped a deal could be struck in the coming days or weeks – but he warned that getting there would be tough.

[…]

“We count on China to adapt its behaviour and to understand that we have to rebalance the economic relationships for more fairness, for fair competition, for a more level playing field.”

[…]

A furious Beijing has responded with new tariffs on EU-made brandy, alarming French producers, while Brussels is also investigating Chinese subsidies for solar panels and wind turbines.

China is also tangled in a bitter, wide-ranging trade dispute with the United States, with Washington announcing sharp tariff hikes targeting $18 billion of Chinese goods including electric vehicles, EV batteries and solar cells.

Beijing reacted angrily to Michel’s remarks Friday, condemning what it called the EU’s “lose-lose” approach to the dispute.

[…]

With the global economy rattled by conflict in Ukraine and fresh turmoil in the Middle East, Michel said it was better for all to avoid a trade war.

But he insisted the EU would no longer be “naive” about massive government subsidies, though he offered some hope the two sides would find a way out of the row.

[…]

  • RubberDuck@lemmy.worldEnglish
    3·
    3 hours ago

    Because? If the Chinese government subsidizes companies, which in turn turn around and use this advantage to undercut and bankrupt European businesses, it is naive to believe this behavior will change by itself if it has not done so by now.

    Instead the CCP ramped up this behavior in strategic branches.

    • bungalowtill@lemmy.dbzer0.comEnglish
      11·
      1 hour ago

      Yeah I know the EU is just as adamant on the free market as the US as long as it doesn’t concern themselves. This statement has been accurate for more than 100 years. They subsidise, the Chinese subsidise, and still Chinese cars sold in Europe are still way more expensive than in China itself. It’s laughable to just blindly repeat all the government lines.