Brussels [Belgium], April 9: The European Union (EU) has approached Beijing for help monitoring the wave of imports from China that is expected to flow to the EU, after US President Donald Trump sharply increased tariffs on Chinese goods.
China has vowed to "fight to the end" with the U.S. in an escalating trade war with Trump, which could subject Chinese goods to tariffs of up to 104 percent when entering the U.S. market, according to the latest White House announcement.
The challenge for the EU is that goods blocked in the US will quickly redirect to new markets in the EU, increasing the risk of an even deeper global trade war. According to Politico, this happened during Trump's first term (2017-2021).
To address the issue, European Commission President Ursula von der Leyen spoke with Chinese Premier Li Qiang and discussed "establishing a mechanism to monitor possible trade diversions and ensure any developments are dealt with in a timely manner."
"President von der Leyen emphasized China's pivotal role in addressing the potential trade diversion caused by tariffs, especially in sectors already affected by global manufacturing overcapacity," the European Commission said in a statement about the call.
The move to contact China comes just a day after EU Trade Commissioner Maros Sefcovic announced the creation of a European task force to oversee trade redirection in Luxembourg, following a meeting with the trade ministers of the EU's 27 member states.
If the diplomatic initiative with China fails, the EU may be forced to adopt "safeguards", i.e. special tariffs aimed at preventing a spike in trade flows from being diverted.
Trade relations between the EU and China have long been strained. Brussels has for years criticized Beijing for repeatedly subsidizing huge export industries such as steel, aluminum, electric cars and batteries.
However, in response to Washington, von der Leyen "emphasized the responsibility of Europe and China - as two of the world's largest markets - to support a strong, reformed, free, fair and level playing field trading system."
A key moment for coordination between the two sides is expected in July, when the EU hopes to hold a summit with senior Chinese officials in Brussels, von der Leyen announced after her call with Li.
Source: Thanh Nien Newspaper
