China and EU move closer together in tariff war with US
China plans to strengthen economic ties with the EU amid its trade war with the US.
According to RIA Novosti on April 17, the Financial Times reported that China wants to strengthen economic relations with the European Union in the context of the trade war with the US.
“Chinese officials and companies are seeking closer ties with the EU amid President Donald Trump's trade war,” the Financial Times said.
Beijing is looking for alternative markets due to record-high US tariffs; and has sent delegations to European capitals in recent weeks to gauge their interest in investing in China, the publication said.
At the same time, European sources said, EU countries do not have much to offer the Chinese delegations, as many of the union's companies are reluctant to invest in the “Asian dragon”.
Additionally, the Financial Times wrote that the EU is concerned that it will become a place to dump goods that China does not export to the US due to the new tariffs.
“China and the EU are each other’s important trading partners, with bilateral trade soaring to $780 billion today, from $2.4 billion in the early days of diplomatic relations,” said Wang Lingjun, deputy director general of the General Administration of Customs (GAC), at a press conference in Beijing on April 14. “In the first quarter, China-EU imports and exports reached 1.3 trillion yuan ($178 billion), up 1.4 percent year-on-year, meaning more than 10 million yuan in trade exchange every minute.”
US President Donald Trump announced on April 2 that he would impose a general tariff on imports from other countries. The basic minimum tariff will be 10%. At the same time, most countries will face higher tariffs, calculated based on the US trade deficit with a particular country to achieve balance.
For China, the US imposed a 145% tariff. In response, China imposed a 125% tariff on goods from the US.
On April 16, the White House announced that Washington could continue to increase tariffs on Chinese exporters by up to 245%. China's Ministry of Commerce responded that the US had reached a serious "irrational level" in using tariff leverage.
In an interview with RIA Novosti, Chinese Foreign Minister Wang Yi called the US's increase in tariffs on Chinese goods groundless. According to Wang, these measures are damaging the global market and damaging the reputation of the leadership in Washington. Wang also warned of a strong reaction if the US continues to put economic pressure on China.
