The EU aims to collaborate with Trump to address China's "non-market policies," as trade tensions rise. It is also considering protective measures to shield key industries from foreign competition.
The European Union has expressed a strong interest in collaborating with the U.S. President Donald Trump to address China's "non-market policies," according to recent statements by EU trade chief Maroš Šefčovič. This initiative aims to counteract competitive threats posed by China's economic practices.
Šefčovič emphasized the importance of transatlantic cooperation in tackling these challenges, highlighting that the EU, the U.S, and Japan had previously united during Trump's first term to address similar concerns regarding China's economic behavior.
This move comes amid heightened global trade tensions, with President Trump recently threatening new tariffs against both China and the EU. He announced discussions about imposing a 10% punitive duty on Chinese imports, citing issues such as fentanyl trafficking. Trump also expressed concerns over the EU's trade surpluses with the United States, suggesting potential tariff measures in response.
In response to these developments, the EU is considering strategies to strengthen its economic position. One such proposal involves allowing governments to favor European bidders in public procurement processes, a move reminiscent of Trump's "America First" policy. This draft plan aims to protect critical EU sectors from cheaper foreign competitors, particularly from China. However, critics argue that the policy might conflict with existing EU laws and World Trade Organization rules, which mandate non-discrimination in procurement.
The EU's willingness to collaborate with the Trump administration reflects a strategic approach to navigate the complexities of global trade dynamics and to address shared concerns over China's economic practices.
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