ABSTRACT
The European Union (EU) and China are major trading partners. In 2016, EU exports to China totalled 170 billion Euros and China imports to the EU amounted to over 350 billion Euros, creating an EU trade deficit with China of roughly 180 billion Euros. On June 22, 2016 the High Representative of China and the European Commission adopted the Joint Communication on elements for a new EU strategy on China. The EU is particularly interested in economic reforms that will enhance and facilitate more of a free market in the Chinese marketplace, example a level playing field. The same issues exist with China for the EU that is equally problematic for the United States: capacity developments within its basic industries, government policies and support measures in overcapacity sectors such as steel. In terms of China's trading relationship with the EU, the EU is the perfect counterbalance to the US market.
