How Trump May Drive EU and China Closer on Trade: QuickTake Q&A

The European Union and China may be moving toward closer trading ties as President Donald Trump introduces an element of uncertainty into the U.S.’s trading relationship with the rest of the world. Some EU leaders have been encouraged by Chinese President Xi Jinping’s push back against Trump’s protectionist rhetoric. Though China still goes to great lengths to protect its domestic industries -- just one of the issues that divides the two sides -- some believe the time is right to seal an EU-China accord. It would be a milestone for two of the most powerful players in world trade.

German Chancellor Angela Merkel has spoken about her concern with the rise of protectionism, while Chinese President Xi has likened protectionism to “locking oneself in a dark room.” Jyrki Katainen, a vice president of the European Commission, the EU’s executive arm, has predicted the relationship between Europe and China will deepen. Trump withdrew the U.S. from the 12-nation Trans-Pacific Partnership and is likely to end talks on a similar open-trade deal with the EU. That all leaves the EU and China freer to maneuver.