EU-China trade truce frays as both sides claim victory, plan new measures

Two weeks after a surprise EU-China deal to avert a trade dispute, the rapprochement is fracturing as Brussels and Berlin tout the deal as proof of EU leverage and prepare new trade restrictions, while Beijing rejects the narrative of being strong-armed. The core uncertainty is whether the truce holds or escalates into renewed tit-for-tat measures. This matters because it signals the EU's shift toward a more assertive trade posture against China, potentially disrupting bilateral trade flows.

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