The EU’s surprise deal with China on hybrid cars last week was supposed to ease the pressure on Beijing. Instead, Brussels is preparing to intensify its crackdown on Chinese trade practices, emboldened by the discovery that its threats are finally delivering results.
Now, those driving trade policy for the bloc believe they have landed on a two-track formula. Intensive dialogue is seen to have yielded results and will continue.
But so too will the European Union’s efforts to counter what they see as distortive policies in China. There is a clear sense that Beijing responded positively to a threat from the two biggest EU members, France and Germany, last week to quickly close the market to Chinese firms.
It represented a dramatic pivot from Berlin – by far China’s biggest trade partner in Europe – which has previously opposed assertive measures.