EU-China trade relations are in a ‘slow-motion train accident,' business group says

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Trade tensions between Europe and Beijing will likely escalate, according to Jens Eskelund, president of the European Union Chamber of Commerce in China.

Trade tensions between Europe and Beijing will likely escalate due to China's growing ability to manufacture more cheaply in strategic industries, according to Jens Eskelund, president of the European Union Chamber of Commerce in China.

BEIJING — Trade tensions between Europe and Beijing will likely escalate due to China's growing ability to manufacture more cheaply in strategic industries, according to Jens Eskelund, president of the European Union Chamber of Commerce in China. Beijing's emphasis on manufacturing has prompted concerns about overcapacity — China's ability to produce far more goods than the country or other countries can absorb can then result in price wars.

"It is hard for me to imagine that Europe would just sit by and quietly witness the accelerated deindustrialization of Europe, because of the externalization of low domestic demand in China," he said.in the EU — making it the largest category. The sector is also the largest contributor to what the bloc calls its"business economy value added," with a share of nearly a quarter.

In China, mentions of security have increased significantly in Beijing's latest five-year planning document versus prior ones, said Markus Herrmann Chen, co-founder and managing director of China Macro Group, at the media briefing.

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EU-China trade relations are in a ‘slow-motion train accident,' business group saysTrade tensions between Europe and Beijing will likely escalate, according to Jens Eskelund, president of the European Union Chamber of Commerce in China.
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