Hosuk Lee-Makiyama, Director of the European Centre for International Political Economy (ECIPE), spoke to CGTN Europe about what the China–U.S. trade talks mean for Europe. Another round of talks is under way, with only a few complex issues still unresolved. He addressed the negotiations are focused primarily on economic exchanges between the two nations, particularly investment levels. The TikTok issue is seen as relatively minor, while any eventual trade deal between the U.S. and China could carry significant implications for Europe’s global relevance.
00:00Let's talk now to Hosok Lee-Makayama, the Director of the European Centre for International Political Economy.
00:06Hosok, welcome back. Good to see you.
00:08So, a fourth round of trade talks.
00:11What are your expectations from all of this?
00:15Well, this is probably the trade talks that the United States have been engaged in
00:21that has been going on for the longest.
00:22We know through the grapevine that the talks have been going on even before Trump probably took office in informal form
00:33because the U.S.-China relationship is perhaps the most important.
00:38And now, as we see, well, the U.S. administration increasing their leverage by trying to rope in its European partners into 100% tariff,
00:48we are probably very, very close and we are probably down to a couple of sticking points
00:53and they are on the both sides trying to push the other one over the finishing line.
00:59How complex are these negotiations?
01:05Well, sometimes they are very, very complex and sometimes they are not that complex at all.
01:11I know I gave a very academic answer. It was not really my intention.
01:14But ultimately, it usually comes down to one, two points.
01:19And in this case, it's probably about the economic exchange between the United States and China,
01:25which is actually not so trade-driven, but actually investment-driven.
01:29And it's a question about how much cash the United States is allowed to place in China and vice versa.
01:36And we've seen that also in the other agreements, for example, between the U.S. and Japan,
01:40which basically came down to how much Japan was willing to invest in the United States.
01:46We've been reporting this success on a framework for TikTok,
01:51but, I mean, presumably the future of TikTok in the United States still remains in the balance somewhat.
01:56I mean, how much of a sticking point is the company's fate for these talks?
02:01Let's face it, no trade deal between two major powers like the United States and China
02:12is conducted on the sake of one company.
02:14It could be an unnecessary friction.
02:17It could be a sticking point that the other side is trying to pocket.
02:22And I think we have just one impediment less along the long list of maybe 10 points of similar caliber
02:31that has not been reported on or that has been settled very early on.
02:36And I think this is also one of the issues where the United States could be setting a very dangerous precedence
02:43by saying, look, China, you will be entitled to act in a similar way against the U.S. companies
02:50who is becoming too popular in China in the future.
02:55What's at stake for Europe in these China-U.S. talks?
03:01Well, the nightmare scenario for Brussels and Paris and Germany
03:08is ultimately the real adults in the room,
03:11which is basically Beijing and Washington will do a deal and throw Europe under the bus.
03:16Now, Europe has offered to bully China
03:18and partner with the United States,
03:22basically saying the old cliche of don't bully me, bully the new Asian guy.
03:29And there's a certain limit in terms of mileage, how far you can go,
03:33because in the end, the transatlantic era is coming to an end.
03:37And the second, the United States and China is reaching a new accord and a new understanding,
03:44we are looking at dire straits for Europe in terms of its global relevance.
03:49Hosok Lee-Makiyama, thank you for that.
03:51Hosok Lee-Makiyama, director of the European Center for International Political Economy.
03:56Hosok Lee-Makiyama, director of the European Center for International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International International
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