The key facts

  • Noah Barkin (Rhodium Group): the EU is 'much more unified' on a tough line toward China after Germany's shift in position
  • The EU has an October deadline to address the trade deficit with China, otherwise tougher measures will follow
  • Barkin: Beijing has 'retaliation dominance in the short term', but the EU has leverage through access to its single market

EU unity after Berlin's shift in position

The European Union is more unified than it has been in recent years on the question of taking a tougher line on the trade imbalance with China — after Germany moved toward a firmer position. This assessment was given by Noah Barkin, senior adviser at Rhodium Group and author of the Watching China in Europe newsletter, on air during the Special Report program with Maria.

Deadline and balance of leverage

The EU has set an October deadline for resolving the problem of the growing trade deficit with China, otherwise tougher measures will be applied. According to Barkin, Beijing has 'retaliation dominance in the short term', however the EU possesses leverage through access to its single market and believes that China is also interested in avoiding escalation.