As the EU and the U.S. distance themselves from China, Beijing pivots toward Asia.
Trade patterns are shifting and profoundly so. The European Union (EU) and the United States have agreed to advance their decoupling from China. Meanwhile, agreements in Asia have opened the door to considerably more trade between the dominant economies of that region, South Korea, Japan, and China — substantively, if not immediately. The United States and the European Union recently reached an understanding that excludes China and could set the tone for still more such agreements. Washington has lifted the tariffs on steel and aluminum that Donald Trump imposed on the EU, while both sides have joined in the creation of what their press release describes as a “a global arrangement on sustainable steel and aluminum” production. By adding that the agreement encompasses trade “among like-minded nations,” these partners have made clear their aim to exclude China. EU Trade Commissioner Valdis Dombrovski highlighted how the agreement would “restrict market access for non-participants.” President Biden was blunter, if less elegant. “These agreements,” he said, “[will] restrict access to our markets for dirty steel from countries like China and other countries that dump steel on our markets.” If the EU and the U.S. have joined hands on this matter, the westerners still share some hard feelings among themselves. Europeans are miffed that the Biden White House refuses to lift Trump’s claim that the tariffs were a matter of national security.
