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A new trade war may be brewing. This time, Europe is taking a page from Trump’s playbook - ‘We no longer live in a world of pink ponies and rainbows’
Yahoo Finance • • world
Key Points:
- The U.S., Europe, and other major economies have urged China to shift its economic growth toward consumer spending rather than relying heavily on exports, but China continues to promote key industrial sectors and export excess supply overseas.
- China's move up the value chain in manufacturing has led to increased competition that threatens higher-end industries in Europe, Japan, and South Korea.
- European Commission President Ursula von der Leyen and French President Emmanuel Macron have criticized China for trade distortions and limited market access, with Macron suggesting the EU might impose tariffs to address the trade imbalance.
- The EU plans to propose a law requiring companies to diversify their supply chains, responding to frustrations that previous efforts have not prompted businesses to act quickly enough.
- European officials acknowledge delays in addressing the China trade issue, with some diplomats expressing frustration that discussions about the problem have been ongoing without sufficient action.
