Beijing strengthens dialogue with the EU, compensating for losses from US duties

China intends to strengthen economic ties with the European Union amid the trade conflict with the United States. Beijing sees Brussels as a strategic partner and an alternative market, especially in the face of increased U.S. tariffs. In recent weeks, Chinese delegations have visited European capitals to explore investment prospects and the level of interest in cooperation. 

However, European companies have shown restraint in investing in China, and EU governments have not proposed specific initiatives. In addition, Europe fears dumping of Chinese products, possibly due to the reorientation of exports from the United States to the European market.

The tension intensified after Donald Trump signed a decree on «reciprocal» import duties on April 2. The base rate was 10%, but for a number of countries, except China, the minimum rate was maintained for 90 days. The retaliatory measures of the United States and China led to an increase in duties to 125% for both sides. In addition, Washington imposed 20% tariffs on Chinese goods, explaining this by China's insufficient fight against synthetic drugs.