Opinion | China-EU investment deal shows a Joe Biden united front on trade will not be easy

AdvertisementEuropean UnionOpinionCommentStephen OlsonOpinion | China-EU investment deal shows a Joe Biden united front on trade will not be easyThe EU’s decision to proceed with the deal

and ignore Biden’s requests to slow down shows the extent to which US and EU China strategies are not always in syncSome type of US-EU coalition on China is likely to materialise, but it

will be more limited in scope and more complicated to manage than originally thoughtReading Time:3 minutesWhy you can trust SCMP13Stephen OlsonPublished: 4:00am, 19 Jan 2021Updated: 6:06am,

19 Jan 2021As President-elect Joe Biden’s administration gets up and running, perhaps the sharpest policy difference with its predecessor will be the new president’s desire to repair global

alliances, build coalitions and work constructively with like-minded countries. This is particularly true on trade policy, where Biden has expressed a desire to establish a united front with

the European Union on trade grievances with China.Advertisement Biden’s desire to reverse President Donald Trump’s go-it-alone strategy is prudent. However, caution is in order. While there

is broad alignment between the United States and the EU on China trade issues, there are differences which could complicate the establishment of an effective coalition.

These are already evident. The EU’s decision to move forward with an investment agreement with China, ignoring requests by the Biden team to slow down, demonstrates the extent to which US

and EU China strategies are not always in sync. Although it has been overshadowed by the US-China trade war, the US-EU trade relationship is also on rocky ground. The EU was broadsided by

the Trump administration’s imposing steel and aluminium tariffs on national security grounds, and it responded with US$3 billion in retaliatory tariffs.

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Robotics a key cog in ‘Made in China 2025’ wheel

Robotics a key cog in ‘Made in China 2025’ wheel The Boeing-Airbus subsidies dispute continues to drag on. The World Trade Organisation has authorised the US to apply US$7.5 billion in

tariffs to the EU, while it allowed the EU to enact US$4 billion in tariffs on the US.

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