Europe's trade war strategy with China shifts to survival and deterrence
Brussels is increasingly focused on ensuring core European industries survive a potential trade war with China, shifting from de-risking to building credible retaliatory tools. The EU aims to acquire leverage to respond if China uses trade coercively, as some industries already face job losses. Unlike US President Donald Trump's 2018 claim that "trade wars are good, and easy to win," few in Brussels share such hubris. The question of whether Europe can actually win such a conflict remains open, with victory itself being redefined.
Key facts
- Brussels is determined to ensure core industries survive a trade war with China.
- EU resilience-building and de-risking plans now include deterrents.
- Brussels seeks leverage and credible retaliatory tools against Chinese coercion.
- Some EU industries are already haemorrhaging jobs.
- US President Donald Trump said in March 2018 that 'trade wars are good, and easy to win'.
- Few in Brussels share Trump's hubris about trade wars.
- The definition of victory in a trade war with China is being questioned.
Entities
Institutions
- European Union
- Brussels
Locations
- Europe
- China
- Brussels
- Beijing