HomeContributorsFundamental AnalysisGeopolitical Radar - EU-China Trade Tensions Brewing, Ukraine Makes Advance

Geopolitical Radar – EU-China Trade Tensions Brewing, Ukraine Makes Advance

  • EU-China trade tensions are brewing with an EU probe into Chinese EV subsidies. US weapons sale to Taiwan under sovereign-nation program feeds new tensions. China has increased the intensity of military exercises around Taiwan lately.
  • Ukraine has made significant advance in the battlefield, successfully breaking through the first Russian line of defence in the south. If they are able to push further, they could eventually be able to attack key Russian logistics routes.

Recent developments related to China

Are EU and China heading for a trade war? At least we are seeing increased tensions in the trade area, which need to be followed over the coming year(s). EU’s trade deficit with China has increased sharply in recent years, partly due to exports within green tech, where China is leading. The EU Commission President Ursula von der Leyen on Wednesday announced that a probe into Chinese EV subsidies will be launched. China responded with a sharp rebuke saying China’s competitive advantage in the EV space had nothing to do with subsidies. Imports of Chinese EVs have increased significantly and was likely to become a flash point of tension sooner or later, not least as it challenges the German auto sector significantly.

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