“We have talked for a long time about the European Commission having this toolbox. However, we had doubts about the Commission’s ability to use this toolbox effectively. . Now we see that indeed the European Commission is able and willing to use it,” said Francesca Ghiretti, senior geoeconomics analyst at the Adalga Institute.
Gunnar Wiegand, a former diplomat for Asia at the European External Action Service and a distinguished fellow at the German Marshall Fund, also argued that the new trade weapons were always designed to be deployed, not just for show.
“No one should be surprised that the equipment, which was created over the past few years through a rather lengthy process, is finally being put into practical use,” he said.
message to washington
Europe’s tough stance has both benefits and risks. On the other hand, the EU’s stronger position on China is an olive branch to America’s hawkish allies, who have often been disappointed by Europe’s soft-soft approach. But it also means Europe needs to prepare for a period of blowback from Beijing and a period of trade tensions.
The United States is undoubtedly monitoring the EU’s new game plan closely. Shortly after this week’s announcement of the medical device investigation, U.S. Trade Representative Katherine Tai said she was following it “with interest” and “identifying and exploring ways to address non-market policies and practices used by the United States.” In this regard, he emphasized close cooperation between the two countries. [China] In various fields including medical devices. ”
The subsidies investigation is not the only sign of Brussels’ determination to confront Beijing more directly. Pressure is also growing within the EU to mount a more realistic challenge to China’s massive Belt and Road infrastructure investment projects. The Chinese government is expanding its strategic reach by supporting the construction of ports and roads linking Asian and European markets.
