China’s economic ties with EU take hit as investment falls and distrust rises
Annual economic talks failed to eventuate at end of last year and China is also dragging its heels on Juncker plan investment
After years of growth, China’s trade ties with its biggest partner, the European Union, seem to be foundering, with frictions growing over a range of issues from steel overcapacity to market access, human rights and the South China Sea.
The tensions were apparent at the end of last year when Brussels and Beijing were due to hold the annual China-EU High-Level Economic Dialogue but the meeting never took place, sources told the South China Morning Post.
There was also no joint statement at the end of the annual China-EU summit in Brussels in June due to a rift on whether to grant China market economy status, which would make it easier for Chinese exporters to avoid high anti-dumping and anti-subsidy duties.
In addition, Beijing’s participation in Brussels’ massive investment plan is proceeding slowly.
“Distrust and conflicts have been on the rise in the past couple of years,” said Zhao Junjie, a European issues specialist at the Chinese Academy of Social Sciences.
