Is the EU already in a trade war with China?

KOEN VERHELST, JORDYN DAHL, STUART LAU AND CAMILLE GIJS

Source Link

BRUSSELS — What do vanilla, steel pipes and electric cars have in common?

You guessed it: The European Union is investigating imports of these goods from China to find out whether they are being sold below cost or are being unfairly subsidized by Beijing. China, in return, suspects Europe of dumping premium cognacs on its market — and is dropping heavy hints that European luxury cars and pork meat could soon face restrictions.

The tit-for-tat dynamics suggest that the EU — which last year ran a bilateral trade deficit in goods of nearly €300 billion and now wants to narrow that gap — may soon slide into a trade war with China.

But are they in one already?

We’ll find out soon enough. Here’s POLITICO’s take on how this could play out:

Why is everyone talking about Chinese cars?

Trade nerds in Brussels — and auto industry bosses in Stuttgart, Munich and Wolfsburg — are nervously awaiting the outcome of the EU’s investigation into whether China unfairly subsidizes its electric vehicle industry.