Why Europe is pivotal player for China in a three-way trade puzzle
With Beijing-EU talks expected this month, and EU, US and Chinese interests interlinked, taking one side in each battleground risks alienating the third party
China should collaborate on multiple fronts to work through a three-way stand-off over trade between Beijing, Brussels and Washington, observers and diplomats have said.
The need for a strategic balancing act has gained fresh urgency with Beijing and the European Union (EU) to hold high-level economic talks on June 25, according to a European source, after dialogue due last year was delayed.
The two sides would also soon start a new round of talks on what would form the Comprehensive Agreement on Investment, covering market openness, the source said.
China lifts EU hopes with ‘political commitment’ to expand market access
There had been signs that Beijing and Brussels were ready to engage over trade and investment since Chinese Vice-Premier Liu He and European Commission Vice-President Jyrki Katainen agreed on May 24 to hold economic dialogue as soon as possible, but the discussions will have a complex backdrop.
The EU and the United States hold similar positions on uneven intellectual property treatment and the slow pace of opening up market access in China, but have been in dispute on aeroplane subsidies for more than a decade.
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The EU and China share common concerns on the unilateral trade actions taken by the US, and its exit from the climate change accord and the Iran nuclear deal, but have long disputes on industrial overcapacity and anti-dumping rules.