China’s industrial strengths must also benefit its trading partners

AI Summary

The European Commission is pressing China to address the growing EU-China trade imbalance with progress expected by next month, signaling possible trade protection measures ahead. The discourse centers on how China’s industrial strength and trade surplus can benefit not only China but also its trading partners while managing overcapacity concerns.

The European Commission is pressing China for progress by next month to address the widening EU-China trade imbalance, and raising the possibility of new protectionist trade policy. The deadline raises a question: how should China and its trading partners address perceived economic imbalances while sharing the benefits of Chinese industrial competitiveness? China’s merchandise trade surplus approached US$1.2 trillion last year even as other exporting economies press for controls. “Overcapacity”...