EU-China trade war unavoidable, says Borrell

Josep Borrell, the High Representative of the European Union for Foreign Affairs and Security Policy, has suggested that a trade war between the EU and China may be "unavoidable”.

Speaking at an event in Spain on August 20, Borrell acknowledged the growing tensions between the EU and China, emphasizing that while the EU has no interest in engaging in a trade conflict, the current trajectory of economic policies might make it inevitable, Caliber.Az reports, citing Chinese media.

Borrell's comments come amid mounting concerns over the impact of Chinese imports on European markets. He highlighted that the influx of cheap Chinese-made products, particularly electric vehicles, has been exacerbated by higher tariff rates imposed by the United States.

“We mustn’t be naïve. The US doesn’t consult us when they ban the import of Chinese cars. They are not asking us where those cars will go if not to the US. I am sure they will end up in the European market, creating a competitiveness issue for our industry,” Borrell said.

In response to these concerns, the European Commission has proposed implementing definitive tariffs of up to 36.3 per cent on Chinese-made electric vehicles. This move is aimed at safeguarding European manufacturers from what they perceive as unfair competition from subsidized Chinese products.

The escalation of trade disputes has not been one-sided. On the heels of the EU's tariff proposal, China has initiated its own retaliatory measures. Beijing launched an anti-subsidy investigation into EU dairy imports and is already conducting anti-dumping probes into European brandy and pork products. These actions have further strained relations between the two economic giants.

As EU leaders commit to protecting their markets from perceived unfair practices, Beijing has vowed to “take all necessary measures to resolutely defend the legitimate rights and interests of Chinese companies.” The rhetoric from both sides suggests that a full-blown trade war may be on the horizon, with each side preparing to defend its economic interests against the other.