With Donald Trumps victory in the US presidential election, the global trade landscape faces major adjustments again. Recently, Bernd Lange, Chairman of the European Parliaments Trade Committee, stated in an interview with German news channel that the EU must re-examine and adjust its competition policies after Trumps return to office, especially in the tariff dispute over Chinese electric vehicles, where the EU is expected to reach new agreements. This statement marks a strategic shift in the EUs approach to US-China trade tensions while reflecting its deep understanding of economic system dependencies and supply chain complexities.

During the interview, Lange emphasized that the EUs economic system not only faces potential risks of dependence on China but is also embedded in a complex global value chain. He noted that while the EU has unilateral dependence on China for certain raw materials, this reliance is not comprehensive. Therefore, the EU is actively seeking more suppliers to reduce dependence on a single market. However, uncertainties in global supply chains, such as the grounding of ships in the Suez Canal or natural disasters like floods in ASEAN regions, prevent the EU from focusing solely on trade risks with China and necessitate a comprehensive approach to supply chain risk management.

Since the trade dispute over electric vehicle tariffs erupted between China and the EU, the bloc has insisted on protecting its domestic industries by implementing multiple tariff measures while repeatedly expressing willingness to continue negotiations with China to seek potential agreements that avoid further tariff increases. Particularly in the electric vehicle sector, which has become a focal point of Sino-EU trade tensions amid growing global demand for clean energy and sustainable transportation.

Recently, Lange revealed in an interview with German broadcaster NTV that EU and Chinese technical teams have held multiple rounds of consultations in Beijing since early November, engaging in in-depth discussions on the price commitment proposal for the EUs anti-subsidy case against Chinese electric vehicles, with significant progress made. Lange stated that the EU hopes to reach an agreement through these negotiations to eliminate tariffs on Chinese electric vehicles, thereby addressing the distortion of competition caused by unfair subsidies. While he did not elaborate on the specifics of the agreement, he insisted it would ensure a level playing field in the electric vehicle market, consistent with EU legislation allowing anti-subsidy duties in cases of dumping measures or illegal subsidies.

As a Member of the European Parliament from Germanys Social Democratic Party (SPD), Lange specifically mentioned the stance of German Chancellor Olaf Scholz, who also belongs to the SPD. He noted that due to German automakers deep roots in the Chinese market, EU tariffs on Chinese electric vehicles could prompt retaliatory measures from China, jeopardizing the position of German car manufacturers in China. Therefore, the EU must strike a balance between protecting its domestic industries and maintaining international trade relations.

According to Reuters, the European Commission has yet to formally respond to Langes interview remarks. However, industry analysts widely believe that in dealing with the trade policies of a Trump-led U.S. administration, the EU will adopt more flexible and pragmatic strategies to safeguard its economic interests while avoiding a full-scale trade conflict with China.

Meanwhile, in the U.S., the proposed 10% to 20% tariffs on all imported goods following Trumps election have drawn widespread attention and responses from American businesses and consumers. Jerome Powell, President of the Federal Reserve Bank of Minneapolis, recently stated that if Trump implements this tariff policy, it would exert short-term upward pressure on inflation. However, in the long term, unless other countries impose retaliatory tariffs, its impact on long-term inflation would be relatively limited. Nonetheless, market concerns persist that a tariff war between the U.S. and other major economies could pose severe challenges to the stability of the global trade system.

Against this backdrop, trade negotiations between the EU and China have become particularly crucial. Given the high interconnectivity of the global economy, trade policy adjustments by any single economy, especially tariff measures between major powers, will profoundly impact global supply chains and the international trade landscape. In its negotiations with China, the EU must protect the competitiveness of its domestic industries while avoiding supply chain disruptions and declines in economic efficiency caused by tariff policies—a complex and daunting task.

Bernd Langes remarks not only reflect the EUs adaptability amid U.S.-China trade tensions but also highlight its proactive role in global economic governance. His statements suggest that the EU may adopt more active trade policy adjustments in the future to address the uncertainties and challenges posed by a potential Trump administration.

On a practical level, the multiple rounds of consultations between the EU and China demonstrate both sides willingness to cooperate in resolving trade disputes. Although China has repeatedly opposed the EUs anti-subsidy investigations, labeling them as protectionist measures that could severely disrupt the global automotive supply chain, there remains room for compromise through negotiations in the current international political and economic environment. This is especially true for the strategic emerging industry of electric vehicles, where cooperation and dialogue between the two sides concern not only their respective economic interests but also shared global goals of clean energy and sustainable development.

Moreover, the EUs adjustments reflect its recognition of the complexity of global value chains. As Lange noted, global supply chains do not rely solely on any single country or region but constitute a diversified and interdependent system. Therefore, the EU must comprehensively consider various potential risks and challenges when formulating trade policies to ensure the stability and sustainable development of its economy.

In summary, with Trumps election as U.S. President, global trade policies face new uncertainties. While responding to U.S. tariff policies, the EU is actively adjusting its trade relations with China, seeking favorable agreements through negotiations to safeguard its economic interests and the stability of the international trade order. Bernd Langes remarks have charted a course for the EU in this complex global trade environment, demonstrating its firm commitment to fair competition and international cooperation. In the coming days, trade negotiations between the EU and China will be a focal point for the global economy, and whether the two sides can resolve their differences through dialogue will largely determine the trajectory of the global trade system.