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Trump–Xi Trade Truce Puts EU’s China Policy at a Crossroads

EU leaders confront a gap between strategic autonomy ambitions versus the costs of the transatlantic truce.

Overview

  • A trade detente reached by President Donald Trump and President Xi Jinping in South Korea is prompting reassessment in Brussels of recent hardline measures on China.
  • The EU has shifted toward more protectionist tools, moving away from its traditional free‑trade posture in response to concerns about subsidies, overproduction and market distortions.
  • European officials justify the tougher stance by citing unfair Chinese trade practices and what they view as covert support for Russia’s war in Ukraine.
  • Analysts say U.S. pressure under Trump played a decisive role in aligning Europe more closely with Washington’s approach to Beijing.
  • A prior truce with Washington averted a transatlantic trade war but left Europe paying U.S. tariffs, increasing NATO defense outlays and purchasing more American weapons for Ukraine.