Europe could prosper as China’s trade ally rather than adversary

The European Commission has been clearly signalling its intention to wage a trade war against China. Brussels’ intent to counter the so-called China shock 2.0 – the wave of subsidised Chinese exports such as electric vehicles (EVs), solar panels and batteries – is no longer merely a verbal threat but appears to be an imminent decision. Comparing current trade tensions between the European Union and China with the trade conflict between Europe and Japan in the 1970s and 1980s reveals striking...