EU Urged to Balance Trade Relations with China Ahead of Key Summit
Economists stress Europe must swiftly balance its trade with China as key summit approaches.
Key Points
- • EU must balance trade with China amid U.S. tariffs pressures.
- • Upcoming summit commemorates 50 years of EU-China relations but reduced to one day.
- • Bergqvist warns of the risks of over-dependence on global partners.
- • The need for a consensus on export practices between the EU and China is urgent.
As the European Union prepares for a crucial summit in Beijing, economists are emphasizing the urgency of establishing a balanced trade relationship with China. Robert Bergqvist, a senior economist at SEB, highlights the challenges presented by U.S. tariffs, which may push China to increase its exports to Europe. This shift could lead to price pressures on European companies, underscoring the need for the EU to reach a consensus with China on reasonable export practices.
The upcoming summit, marking 50 years of diplomatic relations between the EU and China, has been notably shortened from two days to just one. This reduction reflects diminishing expectations for significant breakthroughs, with the meeting being viewed more as a symbolic gesture than a platform for major agreements. Key leaders, including Ursula von der Leyen and Xi Jinping, will attend, which adds weight to the occasion, but also highlights the delicate balance the EU must maintain in its trade dealings, particularly following lessons learned from over-dependence on countries like Russia.
Bergqvist warns that while the EU must deepen cooperation with China, it also needs to mitigate risks associated with such reliance, urging for a careful strategic balancing to avoid past mistakes that may have grave ramifications for European economies.