Asia Sentinel

Asia Sentinel

Business/Economy

EU Averts Trade War With China For Now

America is the elephant in the room of EU-China trade talks

Jul 03, 2026
∙ Paid
By: Toh Han Shih

The 27-country European Union has avoided a trade war with China through a conditional truce despite EU complaints over its huge trade deficit with Beijing, giving China, its second biggest trading partner after the US, till October to reduce the deficit, which rose by nearly 20 percent to €360 billion (US$412 billion) in 2025 from 2024,…

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