German officials are reportedly working to identify Chinese trade vulnerabilities that they could exploit should the EU enter a trade war with the Asian giant, underscoring the rising tensions between the economic superpowers.
European leaders have long complained that cheap Chinese imports risk hollowing out their manufacturing capacity, particularly in Germany, Europe’s industrial powerhouse.
Chinese car exports to Europe have sent demand for German cars plummeting, hitting profits and forcing automakers to make tough decisions: Volkswagen is reportedly set to cut as many as 100,000 jobs. Experts fear that surging Chinese overcapacity — stoked by flatlining domestic consumption — could further deepen the EU-China trade imbalance. “We must no longer be naive,” France’s minister for foreign trade told Euronews.