After two days of tough trade talks in Beijing, China and the EU issued a 16-point list of consensus on trade and economic cooperation.
Days earlier, France and Germany urged Brussels to develop a new trade tool that could restrict major partners, such as China, from the EU market, even though the proposal did not name China.
So what's really going on?
Brussels has repeatedly blamed China's so-called overcapacity and unfair trade practices for Europe's massive trade deficit. But the numbers tell a more complicated story.
For decades, European companies have made enormous profits from doing business with China, from German carmakers and Airbus to luxury brands. Meanwhile, Europe's own economy faces sluggish productivity growth, rising energy costs, demographic challenges and chronic underinvestment.
So is China really responsible for Europe's economic struggles? Or has blaming Beijing become a convenient way to avoid confronting problems closer to home?
In this episode of News Xplained, we break down the latest China-EU trade talks and the economics behind Europe's trade deficit.
Reporter: Xie Hongzhou
Cameraman: Xie Hongzhou
Video & Poster: Pan Jiajun
