"China-EU Customs Tariff Dispute Not Expected to Escalate Further"

Forex - Industry observers stated that China will avoid escalating its dispute with the European Union regarding tariffs on electric vehicles. Shaun Rein, Managing Director of China Market Research Group, told CNBC that China's additional appeal to the WTO yesterday regarding the EU's tariffs on electric vehicles is "a warning shot to Europe to show that China is strong but will not go too far," and expressed his expectation that China's response, while trying to establish closer economic ties with Europe during a period of increased tensions with the US, will be "measured." Sam Radwan, CEO of Enhance International consulting firm, stated that China will "do its best to find a middle ground with the EU and demonstrate all necessary efforts." Radwan noted that it is unlikely for the China-EU dispute to escalate to the same level as the Washington-Beijing dispute and highlighted the EU's dependency on China within the electric vehicle value chain.