The European Parliament is deeply concerned about the high probability of a trade war with China, a scenario in which China could emerge victorious, while the euro area faces defeat. 

A group of French members of the European Parliament has recently warned of a possible trade war between the European Union and China. This situation could unfold in response to Beijing’s reaction to Brussels' imposition of tariffs on Chinese electric vehicles. 

Notably, in late October 2024, the European Commission decided to increase tariffs on Chinese-made electric vehicles to as much as 35% in an effort to restore fair competition with Chinese manufacturers, which benefit from significant subsidies from Beijing. In doing so, EU lawmakers sought to protect the European automotive industry "from unfair practices uncovered in a recent investigation."

The announcement was met with disapproval from the Chinese government, which in turn warned of possible tariffs on EU agricultural products, including brandy. The brandy sector currently exports 97% of its products, with 31% of which going to China. In this context, the sector risks becoming a victim of the trade war between the EU and China.

During an international meeting on December 10, Chinese President Xi Jinping endorsed the normalization of bilateral relations with the United States. He urged against a trade war, in which "there will be no winners." According to the Chinese leader, "tariff, trade, and technology wars go against the historical trend and economic laws." In this tense situation, Beijing is ready for dialogue, stressing that any differences that may arise during joint activities should be "kept under control."