EU must avoid ‘disaster’ of decoupling amid China tariffs

[Pelican Press 0]

EU must avoid ‘disaster’ of decoupling amid China tariffs

The ********* Union must avoid a harmful decoupling of global trade as it mulls tariffs on ******** electric vehicles and other goods, the bloc’s economic chief said Wednesday.

“I think that as far as Europe is concerned we need a more mature attitude in our trade, securing our economy … especially with China,” ********* Commissioner for Economy Paolo Gentiloni told CNBC’s Silvia Amaro.

Gentiloni noted the EU’s ongoing anti-subsidy probes covering the EV market and wind turbines, which are addressing concerns that China is overwhelming global markets with green energy products.

These enquiries are a way to understand whether the subsidies provided by the ******** government to domestic firms are “disrupting any chance for ********* companies,” Gentiloni said.

“But this is not bringing us to a theory of decoupling of global trade, which would be a disaster for both parts of the decoupling,” he said.

“The characteristic of the EU economy is to be more open, more influenced by trade, and less by only internal consumption. This is the reason, the economic reason, why it is in the interest of the ********* Union to keep the doors of trade open.”

The U.S. on Tuesday announced hefty tariff hikes on $18 billion worth of ******** imports, across EVs and the lithium-ion batteries used in them, solar cells, steel and aluminum.

China argues that its EV market is growing due to innovation rather than state subsidies, and says the U.S. Inflation Reduction Act — which has also sparked protectionism concerns among EU officials, including Gentolioni — is subsidising U.S. manufacturing.

Meanwhile, several EU nations are nervous about potential ******** retaliatory trade measures hitting important domestic industries, from ******* automotives to French cognac.

That comes as the bloc looks to recover from years of sluggish economic growth and a shallow recession in the latter half of 2023.

Gentiloni on Wednesday struck an upbeat tone on the

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for the year, which he said followed a “very, very difficult 2023” marked by economic stagnation, increased levels of savings and uncertainty from the ongoing Russia-Ukraine war.

“Gradually, activity is accelerating, and the main driver will be private consumption. At the same time, we have two other factors that are very positive,” he told CNBC.

“Inflation is indeed declining. And employment is still high, very high, it will continue to increase in the coming months.”

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