EU Commission Vice President Dombrovskis in China: Relations at their lowest point - is there a threat of a customs war? September 24, 2023

EU Commission Vice President Dombrovskis in China: Relations at their lowest point - is there a threat of a customs war? September 24, 2023

According to a report by amp2.handelsblatt.com, the relationship between the EU and China has reached a low point due to economic and geopolitical differences. The EU has announced an anti-dumping investigation into electric cars from China, which the Chinese government is threatening with consequences. This has led to growing concerns about a possible tariff war between the two trading powers.

These tensions could have a significant impact on the market and the financial industry. If a tariff war breaks out, tariffs on electric cars could increase production costs and drive up prices for consumers. Furthermore, it could lead to a slowdown in trade and financial losses for companies on both sides. Investment and trade volumes could also decline, affecting overall economic stability.

The EU Commission aims to strengthen its own security and insists on fair conditions in trade with China. This could lead to a shift in global trade flows and new trading partners that could benefit from the tensions between the EU and China. Companies that have historically relied heavily on trade relationships with China may be forced to rethink their business strategies and explore alternative markets.

Overall, the development of trade relations between the EU and China is highly relevant for the financial sector and the market. The financial impact could be far-reaching and requires close monitoring and analysis to respond appropriately.