Key facts
- Protests over living costs have occurred in France, Belgium, and Portugal.
- Some protests in France resulted in widespread looting and damage to shops and public property.
- China has released a paper refuting claims of unfair subsidies and arguing its industrial rise is an opportunity.
- China has previously imposed sanctions on European entities in response to EU sanctions.
Protests fueled by the cost-of-living crisis are shaking parts of Europe, potentially leading to a tougher EU trade stance against China, according to analysts. Demonstrations have occurred in France, Belgium, and Portugal, highlighting widespread frustration over living standards, unaffordable housing, and low wages. In France, some protests escalated into looting and riots, causing hundreds of millions of euros in damages, prompting President Emmanuel Macron to vow accountability for those seeking to destabilize the republic. Meanwhile, China has released a paper asserting that its industrial overcapacity is not unique and that its growth model is not up for negotiation, signaling a potential continuation of managed friction in EU-China trade relations.