Trade conflicts between the US and its allies are benefiting China, which is strengthening its position in the international arena.
US and Its Trade Disputes with Europe
At the G7 summit in Canada, EU foreign policy chief Kaja Kallas said that China is the clear beneficiary of the US-led trade war. The conflict arose from US President Donald Trump's threats to impose 200% tariffs on French and European wines, champagne, and other alcohol imports in response to the EU's plans to tax American whiskey exports. This was a response to the steel and aluminum tariffs imposed by the US.
EU Seeks New Markets
In the face of tensions with the US, the EU is actively forming new trade agreements with other partners, including Mercosur, comprising Argentina, Brazil, Paraguay, and Uruguay. The new agreement eliminates tariffs on more than 90% of trade, providing European companies an annual boost of €4 billion.
China Strengthens Its Position
China is actively developing its trade ties, building closer agreements with ASEAN and other regions. While the US remains absent from key trade agreements like RCEP and CPTPP, China has leveraged the situation to bolster its global economic stability.
As the US continues to deepen its trade conflicts, China is rapidly expanding its influence in international trade.
