\n\u201cThey cheat us too much, and Im glad Trump is finally standing up to them\u201d \u2014 Senator Lindsey Graham, on China<\/em><\/p>\n<\/blockquote>\n
\u201cThen we focus on China,\u201d Graham said earlier this month, after speaking with Trump. \u201cThe goal of President Trump is to unite the world against Chinese business practices that are outside the norm.\u201d<\/p>\n
\u201cIts gonna take a while,\u201d Graham said. \u201cYoure going to see some increase in prices. The supply chain is going to become more costly and youll pay more in the short term, but heres the way I look at China: Pay now or pay later. They cheat us too much, and Im glad Trump is finally standing up to them.\u201d<\/p>\n
While the European Commissions trade officials say they in principle oppose Trumps unilateral decision to slap tariffs on tens of billions of dollars-worth of Chinese exports, they see the practical value of joining forces with Washington to tackle Beijing. They hope they can use the momentum created by Trumps tariffs to get China to sign up to stricter subsidy rules in the WTO, three diplomats and two Commission officials said.<\/p>\n
\u201cWe are totally willing to work with the United States to tackle Chinas unfair practices, and we have started this work,\u201d said one senior EU trade diplomat.<\/p>\n
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U.S. President Donald Trump | Mark Wilson\/Getty Images<\/p>\n
In fact, the anti-China front is already very much in evidence.<\/p>\n
A common front against China<\/h3>\n
On both sides of the Atlantic, the Europeans and Americans are hardening their defenses against Chinas pursuit of key technologies through mergers and acquisitions.<\/p>\n
Washington is preparing extra powers for CFIUS, the committee that can block foreign takeovers, and EU countries in June agreed to take a closer look<\/a> at Chinese takeovers over fears of political influence<\/a>, endorsing an EU security screening mechanism.<\/p>\n
Building on that political cover, Germany this month for the first time used an investment review law to block<\/a> a takeover of a high-tech engineering firm by a Chinese group. Also in August, Germany thwarted the acquisition<\/a> of one of its electricity grid providers by a Chinese investor.<\/p>\n
The anti-China front is also being underpinned by coordinated diplomacy to reform the World Trade Organization. In May, the trade ministers of the EU, Japan and the U.S. said they have agreed to \u201cdeepen and accelerate discussions regarding possible new rules on industrial subsidies and state-owned enterprises so as to promote a more level playing field.\u201d<\/p>\n
The U.S.-EU-Japan troika is well-advanced in drafting a treaty that would toughen WTO rules, and the trio are planning to ask China to sign up to this new framework. That approach, the EU hopes, will make the WTO more able to tackle current distortive practices and would keep the U.S. engaged in Geneva.<\/p>\n
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U.S. Trade Representative Robert Lighthizer | Win McNamee\/Getty Images<\/p>\n
For example, one proposal would create a \u201crebuttable presumption\u201d in WTO law that any subsidy that has not been notified to the WTO is illegal. It would then be up to China to rebut that assumption. This way, the trio reckons, Beijing would have a strong incentive to be more transparent on subsidies. The three also agree that they want China to grant Western companies better market access, and to cut back on forced joint ventures.<\/p>\n