What's bringing China and the EU closer?
China and the European Union are marking 50 years of diplomatic relations this month. At the core of their partnership is trade.
They are the second and third biggest economies in the world after the United States.
The Chinese foreign minister is visiting EU headquarters this week as he seeks closer ties in what he has called a 'volatile' world.
Under President Donald Trump, the US has increasingly turned to sweeping tariffs to get what it wants.
Although Beijing and Brussels are hoping to improve their economic ties, they have disagreements on a number of issues.
So what will that mean for global trade and the economic order?
Presenter: Adrian Finighan
Guests:
Karel Lannoo – CEO, Centre for European Policy Studies
Victor Gao – vice president, Center for China and Globalisation
Raffaele Marchetti – director, Center for International and Strategic Studies at LUISS University in Rome
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Qatar Tribune
20 hours ago
- Qatar Tribune
Fate of major trade deal with EU hangs over Mercosur summit
Agencies The fate of a landmark trade deal with the European Union, which France is trying to block, looms large over a summit this week of South America's Mercosur bloc. Brussels in December struck a deal with Mercosur's founding membersArgentina, Brazil, Paraguay and Uruguay — which would allow the EU to sell more vehicles, machines and pharmaceuticals to South America in return for allowing in more meat, sugar, rice and soybeans from the region. The agreement has been 25 years in the making, but still needs to be ratified by EU member states and the EU parliament. It has faced stiff opposition from France, where farmers worry about being undercut by less-regulated Latin American peers, while enjoying backing from Germany, Spain and Portugal, among others. 'Today, the ball is in Europe's court,' Ariel Gonzalez Levaggi, director of the Center for International Studies at the Pontifical Catholic University of Argentina, told AFP. But 'there isn't much willingness on the part of Brussels to move forward, mainly because of the French resistance,' he added. EU and South American backers of the deal had hoped Trump's tariffs blitz could breathe new life into a deal that would give exporters on either side of the Atlantic new outlets for their products in the event of punishing US duties. For Florencia Rubiolo, a researcher at Conicet, Argentina's scientific and technical research council, it's 'of strategic interest for all Mercosur members, both individually, and as a bloc, to see this deal be ratified.' Among other things, she argued, it would show Argentina's libertarian President Javier Milei that there is value in being part of the group, after his government has railed against Mercosur's constraints on members striking solo trade deals. Milei is gunning for a free trade deal with the United States, and he has suggested he could walk away from Mercosur if necessary to clinch an agreement with Washington. The biannual Mercosur summit comes at a low point in relations between Brazil and Argentina, South America's biggest and second-biggest economies respectively. Milei, a huge fan of US President Donald Trump, has made no secret of his disdain for veteran leftist Lula, referring to him in the past as 'corrupt' and a 'Communist.' Lula has accused the Argentine of talking 'nonsense.' The contempt between the two was plain to see when Lula hosted Milei at a G20 summit in Rio de Janeiro last November. The tensions could be exacerbated if Lula uses his trip to Buenos Aires to visit left-wing ex-president Cristina Kirchner, who is serving a six-year sentence for fraud under house arrest. Kirchner on Tuesday requested permission for Lula to pay her a solidarity visit, in a move likely to anger her arch-nemesis Milei. It was not clear, however, whether Lula would risk upsetting his Argentine counterpart at home. 'We may be experiencing the worst period in relations between Brazil and Argentina, in terms of political convergence,' Juliana Peixoto, an expert in international relations at the Latin American Faculty of Social Sciences, told AFP. She said she nonetheless expected Mercosur, which also includes Bolivia, to endure the tensions.
Qatar Tribune
20 hours ago
- Qatar Tribune
One week left: Global economies face Donald Trump's tariff threat
Agencies With just a week remaining before U.S. President Donald Trump reimposes steep tariffs on dozens of economies – including key allies such as the European Union and Japan – many are still scrambling to strike a deal to avoid the worst. The tariffs taking effect on July 9 are part of a package Trump imposed in April, citing a lack of 'reciprocity' in trading ties. He slapped a 10% levy on most partners, with higher customized rates to kick in later in countries the U.S. has major trade deficits with. But these were halted until July to allow room for negotiations. Analysts expect countries will encounter one of three outcomes: They could reach a framework for an agreement, receive an extended pause on higher tariffs, or see levies surge. 'There will be a group of deals that we will land before July 9,' Secretary Scott Bessent said last Friday on CNBC. Policymakers have not named countries in this group, although Bessent maintains that Washington has been focused on striking deals with about 18 key partners. 'Vietnam, India and Taiwan remain promising candidates for a deal,' Asia Society Policy Institute (ASPI) vice president Wendy Cutler told Agence France-Presse (AFP). Without a deal, Vietnam's 'reciprocal tariff' rises from the baseline of 10% to 46%, India's to 26% and Taiwan's to 32%. Josh Lipsky, international economics chair at the Atlantic Council, cited Indian negotiators' extension of their U.S. trip recently in noting that it 'seems like a frontrunner.' 'Japan was in that category, but things have set back a little,' Lipsky said, referring to Trump's criticism Monday over what the president called Japan's reluctance to accept U.S. rice deals, however, will unlikely be full-fledged trade pacts, analysts said, citing complexities in negotiating such April, Washington has only announced a pact with Britain and a deal to temporarily lower tit-for-tat duties with has also said that countries 'negotiating in good faith' can have their tariffs remain at the 10% baseline. But extensions of the pause on higher rates would depend on Trump, he added. 'With a new government, (South) Korea looks well positioned to secure an extension,' Cutler of ASPI said. Lipsky expects many countries to fall into this bucket, receiving an extended halt on higher tariffs that could last until Labor Day, which falls on Sept. 1. Bessent earlier said that Washington could wrap up its agenda for trade deals by Labor Day, a signal that more agreements could be concluded but with talks likely to extend past July. For countries that the U.S. finds 'recalcitrant,' however, tariffs could spring back to the higher levels Trump previously announced, Bessent has warned. These range from 11% to 50%. Cutler warned that 'Japan's refusal to open its rice market, coupled with the U.S. resistance to lowering automotive tariffs, may lead to the reimposition of Japan's 24% reciprocal tariff.' Trump himself said Tuesday that a trade deal was unlikely with Japan and the country could pay a tariff of '30%, 35% or whatever the number is that we determine.' Lipsky believes the EU is at risk of having tariffs snap back to steeper levels, too, to the 20% unveiled in April or the 50% Trump more recently threatened. An area of tension could be Europe's approach to digital regulation. Trump recently said he would terminate trade talks with Canada, which is not impacted by the July 9 deadline, in retaliation for the country's digital services tax, which Ottawa eventually said it would rescind. This week, EU trade chief Maros Sefcovic is in Washington in a push to seal a trade deal, with the EU commission having received early drafts of proposals that officials are working on.
Al Jazeera
20 hours ago
- Al Jazeera
EU presses China over exports of rare earth elements and Ukraine war
The European Union's foreign policy chief has urged China to end restrictions on the export of rare earth elements and warned that Chinese firms' support for Russia's war in Ukraine posed a serious threat to European security. The statement from Kaja Kallas came on Wednesday after a meeting with Chinese Foreign Minister Wang Yi in Brussels. The EU is seeking to improve its relations with China amid United States President Donald Trump's tariff war, which has rocked major trading powers. But instead of improvements, a trade spat has only deepened between Brussels and Beijing over alleged unfair practices by China. The 27-nation bloc is also railing against the flow of vital tech to Russia's military through China. On Wednesday in her meeting with Wang, Kallas 'called on China to put an end to its distortive practices, including its restrictions on rare earths exports, which pose significant risks to European companies and endanger the reliability of global supply chains', a statement from her office said. On trade, Kallas urged 'concrete solutions to rebalance the economic relationship, level the playing field and improve reciprocity in market access'. She also 'highlighted the serious threat Chinese companies' support for Russia's illegal war poses to European security'. China says it does not provide military support to Russia for the war in Ukraine. But European officials say Chinese companies provide many of the vital components for Russian drones and other weapons used in Ukraine. Kallas called on China 'to immediately cease all material support that sustains Russia's military industrial complex' and support 'a full and unconditional ceasefire' and a 'just and lasting peace in Ukraine'. Wednesday's discussions were to lay the groundwork for a summit between EU and Chinese leaders on July 24 and 25. European Council President Antonio Costa and European Commission President Ursula von der Leyen will travel to China for the summit with Chinese President Xi Jinping and Premier Li Qiang. Earlier in the day, Wang also met Costa as part of those preparations. In that meeting, Wang called on both sides to respect each other's core interests and increase mutual understanding, adding that 'unilateralism and acts of bullying have seriously undermined the international order and rules', according to a Chinese Foreign Ministry statement. Besides discussions on improving bilateral ties, Kallas and Wang also discussed the situation in Iran. While both leaders welcomed the de-escalation between Israel and Iran, Kallas said she had 'urged Iran to immediately restart negotiations on its nuclear programme and that Europe stands ready to facilitate talks', according to a statement from her office. Kallas and Wang also 'agreed on the importance of the Nuclear Non-Proliferation Treaty as the cornerstone of the global nuclear non-proliferation regime'. The EU, the United Kingdom, France and Germany are parties to a 2015 nuclear deal with Iran that the United States abandoned in 2018, which they hope to revive. Iran has always said its nuclear programme is peaceful and denies seeking a weapon.
