The European Union¡¯s latest bid to reset its trade and economic relationship with China is already floundering, with some member states and officials involved in the planning skeptical that the bloc is ready to take decisive action should diplomacy fail.
Despite a renewed campaign to take a tougher stance toward Beijing, the EU doesn¡¯t have the political will to institute meaningful change or pick a fight with China, according to people familiar with discussions among the bloc¡¯s leaders as well as talks in the European Commission, which handles trade matters for the EU.
Member states are aligned on the severe stakes posed by China¡¯s dominant economic position. But leaders can¡¯t yet agree on what tangible steps to take to fix a trade deficit that now exceeds €360 billion ($410 billion) or how to make domestic industries competitive against Chinese companies that rely on state subsidies, said the people, who spoke on the condition of anonymity.
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