European officials claimed that their status in the economy may be greatly affected by the China-US trade war and shared their concern about being 'collateral damage' in the event that the agreement would cause more tension between two of the largest economies of the world.
The EU officials recently showed great concern about the results of the China-US trade war. They claimed that the European economy would greatly suffer if the dispute between the two countries would escalate, them being two of the superpowers of the world.
Director general of the powerful trade department in the EU Commission Sabine Weyand urged business leaders in Brussels that they should be more wary about the effects of phase one of the trade dthe eal. She claimed that the EU economy would face economic uncertainty by 2020 due to the difficulty in forecasting the effect of the trade deal to the European businessmen operating in those countries.
Weyand said that trade would be a rough road for the Europeans come 2020 and that traders should prepare for the worst next year. She claimed that China and the US have used the trade deal as a weapon in the struggle for technological and economic supremacy that the results thereof may directly and adversely affect the European economy.
A report claimed that the European Union (EU) is greatly dependent upon both the US and China as they have been strategically important trade partners for the union. It was highlighted that both countries also provide a good hub for European goods wherein Chinese traded goods have yielded about one billion euros in 2018. On the other hand, it was also showed that the US imports to the EU amounted to 25.48 billion euros where the greater part is due to the import of German cars.
The report also revealed that the US had been providing the EU with security and stability over the years and had been a good defense partner to the Europeans. It was highlighted that Huawei was one of the challenges that Europe faces when it comes to economic protections and security interests.
After tensions about Huawei's issues in the US, the latter warned its economic partners such as the EU about complying with the necessary steps that the US strategized against Huawei and that the failure of its partners to instill the same treatment towards Huawei in their respective territories would suffer the consequences.
US Ambassador to the German government Richard Grenell then warned Germany that the intelligence-sharing should be curtailed in dealing with China. Otherwise, the US would be forced to impose unfavorable trade processes with Germany. Due to such, Germany was in a dilemma of whether it should consider using Huawei components in its 5G network after the US threats.
On the other hand, the Chinese Ambassador also threatened Germany that the same effect would happen if Huawei would be excluded from Germany's 5G network. Thus, the report highlighted that the EU is in the middle of the trade war and that businessmen should expect a backlash from either country this coming 2020.
