China and the European Union have teamed up as a means of pushing back against the U.S. trade threat, with Beijing's top economic adviser, Vice Premier Liu He, warning that recent American policies could result in a global recession, Bloomberg and Reuters report. Both regions have been grappling with new U.S. tariffs, with the EU set to impose retaliatory tariffs on $3.3 billion of American goods this week in response to President Trump's restrictions on aluminum and steel imports, and China staring down $34 billion in tariffs to be instated early next month.
"Unilateralism is on the rise and trade tensions have appeared in major economies," Liu said at the press conference alongside European Commission Vice President Jyrki Katainen. "China and the EU firmly oppose trade unilateralism and protectionism and think these actions may bring recession and turbulence to the global economy."
While representatives of China and the EU are prepared to meet next month to exchange proposals for bilateral investment, Katainen notes that there are still disagreements that need to be sorted out, including the EU's concern about Beijing properly preventing overcapacity in the high-tech and steel and aluminum sectors.