China’s preoccupation with US trade war has European Union officials feeling left out, sources say

Despite the trading bloc being China’s biggest export market, Beijing has been too busy dealing with Washington to find time for Brussels, diplomatic observers say

But failing to make progress on trade and investment talks with the EU before its upcoming leadership change would be a lost opportunity, insider says

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The demands of a trade war with the US have left Chinese officials with little time for the European Union. Photo: Bloomberg

Published: 10:00pm, 29 Sep 2019Updated: 11:19pm, 29 Sep 2019

The European Union is becoming increasingly frustrated at its inability to engage Beijing in economic and trade discussions due to the demands of the US-China trade war, diplomatic observers say.

The tariff dispute, which is nearing its 15th month, has already seen a dozen rounds of high-level talks between the protagonists and left Chinese officials too busy to meet their counterparts in Brussels.

With the next round of negotiations set to take place in Washington in the coming weeks, Beijing recently postponed a planned meeting with the EU on reforming the World Trade Organisation from this month until next, the sources said.

China and the EU set up a joint vice-ministerial-level working group to discuss the reforms in June last year, but since then have held just two meetings.

EU officials have said in the past that their discussions with China on reforms to the WTO have lacked substance and that as far as they were concerned, the two sides remain far apart.

“It is truly frustrating to see Chinese delegations on a pilgrimage to Washington, only to see them getting hammered and tariffs raised,” a diplomatic source said on condition of anonymity due to the sensitivity of the issue.

China’s vice-minister for finance Liao Min last week led a delegation to the US in preparation for the upcoming top-level talks between Chinese Vice-Premier Liu He and US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin.

During the visit of German Chancellor Angela Merkel to Beijing in early September, China’s leaders, including President Xi Jinping and Premier Li Keqiang, promised to continue to open up the nation’s economy. But behind the scenes, diplomats and business representatives are running out of patience with the slow progress on reform.