<p>A new front of economic tensions is opening between China and the European Union and threatens to disrupt the global trade balance. In response to the EU’s proposals to impose tariffs on Chinese electric vehicles, China, an influential member of the BRICS, has warned of the potential for a trade war.</p>
<h2 id="h-escalation-of-trade-frictions">Escalation of Trade Frictions</h2>
<p>China has expressed its displeasure at the <a href="https://www.cointribune.com/en/new-parliament-reassures-european-crypto-industry/" target="_blank" rel="noopener noreferrer nofollow">European Union</a>‘s decision to impose tariffs on Chinese electric vehicles. A spokesperson for China’s Ministry of Commerce warned that this measure could trigger a trade war for which “<em>the responsibility would lie entirely with the European side</em>“. This statement comes after the EU proposed high tariffs on imports of electric vehicles from China, arguing that they benefit from unfair subsidies that distort competition. Beijing, for its part, criticizes these measures as excessive and points out that they could severely disrupt economic relations between the two blocs.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1">
 </div>
</div>
<p>The European Union justifies its proposals <a href="https://watcher.guru/news/brics-china-warns-of-trade-war-with-european-union" target="_blank" rel="noopener noreferrer nofollow">by claiming</a> that Chinese electric vehicles are flooding the market at artificially low prices thanks to massive state subsidies, thus creating unfair competition for European manufacturers. This position has been firmly rejected by China, which sees it as an attempt at disguised protectionism. As a result, trade tensions between these two economic giants have intensified, raising fears of an escalation that could go far beyond the electric vehicle sector and affect overall Sino-European trade.</p>
<h2 id="h-strategic-responses-from-the-brics">Strategic Responses from the BRICS</h2>
<p>In response to the escalation of tensions with the European Union, China and other BRICS members, such as Brazil, Russia, India, and South Africa, are stepping up their efforts to counter Western measures. The most notable initiative is dedollarization, which aims to reduce their reliance on the US dollar by promoting the use of local currencies for international transactions. This strategy is seen as a way to strengthen their economic independence and protect their economies from fluctuations in the US market.</p>
<p>The potential implications of this confrontation are vast. If a trade war were to erupt, it could disrupt not only the electric vehicle sector but also the entire economic exchange between China and the EU. European companies could face retaliatory measures in the form of tariffs or trade restrictions, further exacerbating the already fragile economic situation of certain industries. Furthermore, the acceleration of dedollarization efforts could alter the dynamics of international trade and encourage other nations to join this initiative to reduce their own dependence on the <a href="https://www.cointribune.com/en/expansion-of-the-brics-can-usdt-protect-the-us-dollar/" target="_blank" rel="noopener noreferrer nofollow">US dollar</a>.</p>

BRICS: The Trade War Between China and the EU is Intensifying

Table of Contents

Cointribune EN

Other articles published on Jun 25, 2024

Bitcoin DeFi Alex Lab’s $4.3M Hack Traced to North Korean Lazarus Group

Outflows from US Spot Bitcoin Exchange Traded Funds (ETFs) Continue! Here are the Details

Major Market Gains Hinted as Financial Expert Encourages Massive Bitcoin Buys Before Market Recovery

Pro-Bitcoin Candidate Robert Kennedy Jr. Calls For Monument Honoring Julian Assange In Washington...

Korean Game Studio Discusses High Costs and Development of Blockchain Games

NapulETH: The Premier Web3 Event in Southern Italy

Join our free newsletter for daily crypto updates!