The EU trade commissioner pressed China to balance trade with the bloc, but major divisions between the sides in negotiations and rising tensions have dampened hopes for a breakthrough. Europe’s trade deficit with China has sparked growing alarm on the continent, which fears Chinese goods will hollow out its industries, driving job losses and economic anxiety that ultimately fuel the rise of nationalist parties.
Brussels had initially proposed Beijing voluntarily cap the number of hybrid vehicles it exported to the EU, but China rejected that proposal. Experts instead warn of a looming trade war, with Germany and France calling for the EU to ready new tools that could combat China.
