Trade tensions between the EU and China are deepening. On June 16, the EU’s trade chief, Maroš Šefčovič, said the bloc’s unbalanced trade relationship with China “had reached a point that requires a reset”. The German chancellor, Friedrich Merz, then criticised Beijing days later for what he claimed were its unfair trade practices.
In comments made in Brussels after a European Council meeting, Merz accused China of “flooding markets” through the use of “high subsidies”. He also said China’s currency was undervalued by 30%, making its goods artificially cheaper in global markets. Merz pointed to the Plaza accord as an example of how this issue could be addressed.
