Europe wants to rebalance trade with Beijing, but can't quit Chinese air conditioners

An unprecedented European heat wave has sharply increased demand for Chinese-made air conditioners, highlighting how hard it will be for Brussels to rebalance trade with Beijing. The shock is likely to sustain near-term import flows despite ongoing trade efforts, adding friction to EU-China rebalancing objectives.

Analysis

An unprecedented European heat wave has sharply increased demand for Chinese-made air conditioners, highlighting how hard it will be for Brussels to rebalance trade with Beijing. The shock is likely to sustain near-term import flows despite ongoing trade efforts, adding friction to EU-China rebalancing objectives.