Key facts
- EU likely to avoid full trade confrontation with China.
- Internal divisions and fear of retaliation cited as reasons.
The European Union is likely to refrain from a full-scale trade confrontation with China, primarily due to internal disagreements within the bloc and concerns about potential Chinese retaliation, according to a research firm. This assessment comes at a time when European policymakers are expressing alarm about a potential "China shock 2.0" and advocating for more robust measures to safeguard domestic industries against Chinese competition.
