Europe's trade war with China: a losing battle

Europe has missed its chance to make trade with China mutually beneficial and is now opting for a trade war it is unlikely to win. Current tensions between the EU and China mirror the 1970s-80s conflict with Japan, where European industry feared imports from an Asian manufacturing hub. Then, Japanese firms captured market share in autos, electronics, and machine tools through quality and pricing. Today, Chinese companies lead in EVs, batteries, solar panels, and steel, prompting EU anti-dumping measures. A key difference: Japan was a political ally with favorable US tariffs, while China is viewed as a systemic rival.