One swallow doesn't make a summer, but two are a bit more promising, and that's what we are seeing in the EU/China tradasphere, with harmony breaking out on the oenophile and polysilicon fronts. In a parallel WTO case, over China's rare earth export policies, the country is left looking rather battered after an investigation, and said mildly only that it "regretted" the decision against it. The US, on the other hand, continues to present a hard front towards China over its trading policies for solar energy exports.
What's really going on here is a battle between pro-trade and protectionist factions in the various regions involved. Any given short description of the batteground is going to be over-simplistic, but with that in mind, let's try to disentangle some of the threads of these ongoing trade wars. Read More »