S7/10Economic

EU and China need a grand bargain to avoid a trade war

As European leaders convened at the European Council meeting in Brussels this month, the spectre of a full-blown trade war with China cast a long shadow over the proceedings. Amid ongoing anti-subsidy probes into Chinese green technology and the looming threat of retaliatory tariffs, the economic bedrock of the China-EU relationship appears increasingly fragile. Yet, beneath the hawkish political rhetoric, recent high-level meetings between European officials and their Chinese counterparts...

24 Jun 2026, 08:30 UTCSource: South China Morning PostOriginal source

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⚠️ This is a probabilistic forecast, not a guarantee. Accuracy is measured only on resolved scenarios; monitor confirmation indicators below.
A
Эскалация61% model probability

Сценарий A: Эскалация Сценарий эскалации возможен в случае, если европейские лидеры не смогут достичь краткосрочного соглашения с Китаем по торговым вопросам. Это может привести к увеличению retaliatory тарифов и усилению напряженности между двумя сторонами. Событие 1: Европейский парламент принял решение о введении новых тарифов на импорт китайских товаров (через 14 дней). Событие 2: Китай ответил на тарифы европейцев, introducing own tariffs on European goods (через 7 дней)

Horizon: 7–30 days