Could Europe’s cost-of-living protests sharpen EU-China trade tensions?

As violent protests fuelled partly by the cost-of-living crisis shake parts of Europe, most notably France, analysts say the unrest could add to pressure on European policymakers to take a tougher trade stance towards China.

“One could argue that the EU looks weaker, but then one could also argue that there is more of a need to show external strength at a time of such events,” said David Henig, director of the UK Trade Policy Project at the European Centre for International Political Economy.

The unrest comes as France faces growing financial pressures. Yields on French 10-year bonds topped 5 per cent for a third consecutive day on Friday as political and social turmoil continued.

On Thursday, French President Emmanuel Macron said requests to hold protests submitted by people “with no legitimacy” would be banned in the coming days. Requests filed by unions would be examined under the law, while local authorities would propose alternative routes to keep demonstrations away from city centres, he said.

  

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