Opinion | China and the EU are unlikely to become allies against Trump’s trade war, however much Beijing wishes otherwise

Emanuele Scimia says the continuing Chinese charm offensive is far from winning over EU sceptics who have long complained of Beijing’s unfair trade and investment practices, and in fact have taken action to counter it

Reading Time:3 minutes

The Diaoyutai State Guesthouse in Beijing was the venue for high-level talks on the economy between China and the EU in June. The EU may not like Donald Trump’s protectionist stance, but, like the US, it has similar complaints of China’s trade and investment practices. Photo: Reuters

Published: 5:00pm, 5 Dec 2018Updated: 8:14pm, 5 Dec 2018

During a meeting on the sidelines of the G20 summit in Argentina last Saturday, Chinese President Xi Jinping and his US counterpart Donald Trump agreed to a truce in the trade war escalation between their two countries. The chances for a comprehensive agreement with the United States were remote, and China’s charm offensive to rally support in Europe in the lead-up to the multilateral gathering in Buenos Aires was a sign of its desire to hedge against Trump’s anti-free-trade instincts.

In his keynote speech at the “China meets Europe” summit in Hamburg, Germany, last week, Chinese Vice-Premier Liu He emphasised that his country and the European Union were “staunch supporters” of free trade and multilateralism, and shared “enormous common interests”. Liu also called for the strategic partnership between the two parties to take on “even greater global significance”.

Speaking at a business forum in the Netherlands in October, Chinese Premier Li Keqiang was even more direct. He said that in light of the “growing uncertainties and destabilising factors” in the world economy – evidently a euphemism for Trump’s trade policies – two major economies such as China and the EU should step up strategic communication and coordination, and “respond to the challenges together”.

However, the EU and its member states are unlikely to go all the way against their long-standing Atlantic ally and form a united front with China against Trump’s trade war, should Washington and Beijing not seal a final deal within the next 90 days.

The US protectionist drive has actually angered the EU bloc, which has been quick to retaliate against Trump’s import duties on metals – a response that has infuriated the US president. But it is likewise true that the Europeans share Washington’s accusations of unfair trade and investment practices against China. What’s more, they have taken steps to confront Beijing’s market-distorting actions.