Chinese and EU teams held intensive talks this week to prepare the inaugural
China-EU trade and investment consultation meeting. EU negotiators reportedly
showed little willingness to compromise and are preparing additional
protectionist measures even as talks proceed, raising the risk of a sudden
escalation in China-EU trade tensions. China says it remains committed to
dialogue but is ready to launch firm, necessary countermeasures at any time. EU
officials also signalled that bilateral consultations will not limit use of
existing trade instruments or development of new ones, suggesting further
deterioration in economic and trade ties may be likely.
