Chinese ambassador to Belgium cites 'rising tensions' worldwide over Trump tariffs

Fei Shengchao (pictured), the Chinese ambassador to Belgium, has spoken of “rising tensions” caused to world trade as a result of President Trump’s controversial tariffs.

Speaking in Brussels on 16 May,the veteran diplomat insisted that “no one benefits” from “trade wars” and cautioned again a further escalation in current trade conflicts.

He said: “Dialogue is always the best solution. Trade wars and tariffs produce no winners.”

Amid the fallout from Trump's tariffs, he also advocated “strong” political and economic ties with the EU, saying the relationship between the two sides had been wrongly portrayed in the media.

In a wide ranging briefing he also spoke about climate change and the war in Ukraine, saying China would continue to press for a peaceful outcome to the conflict.

The ambassador was addressing international reporters and others on the issue of world trade and tariffs at Brussels Press Club.

The debate focused on China’s “position against the abuse of tariffs” and what was at stake for international trade.

He accepted that, currently, tensions were high over the tariffs and this has caused “instability and uncertainty.”

But he also noted that while the trade measure announced by the U.S had sparked “drastic market fluctuation” he added that “tariffs are not new and have always been there”.

What was at stake, he said, was in the economic interests “not just of certain countries but everyone” and he warned that, while efforts had been made to defuse tensions in the last few days, “this may not be a one off”.

There was, he added, “concern” about long-term stability in economic markets particularly for the major trading nations  and markets of the world.

The diplomat, who took up his post in Brussels only last June, said that “despite external pressures” the “good news” was that China’s economy had shown its resilience in a way that “many would not have predicted”.

The country’s GDP last year, he told the meeting, grew by 5% which, while not comparing with even higher figures in previous years, “is quite impressive”.

The first quarter of this year showed equally “impressive” growth – 5.4% - and this was across a diverse range of sectors, including housing, finance, digital, semi conductors and  AI.

The economy for the remainder of the year is expected to enjoy double digit growth, said the ambassador, a diplomat for over 30 years.

China was, he noted, already the world’s biggest trading nation and much of its continuing growth was being driven by a healthy domestic market which meant the country was “no longer wholly dependent” on overseas trade and exports for its economic success.

He cited as one example the recent 5-day Labour Day holiday in China which saw record number of movement among the population – 300million visits (6.4% up on the previous year)  and record spending levels – equivalent to $25bn, a 180% increase on 2024.

“This proves the resilience and strength of the Chinese economy,” he said.

The EU and China together account for almost a third of global trade in goods and services and for over a third of global GDP. In 2023, EU-China trade in goods and services exceeded €840 billion.

 But the EU has a persistent trade deficit with China, with the EU importing more goods than it exports. In 2024, the EU imported goods worth €517.8 billion.

The EU-China relationship has been marked recently by rising tensions, not least over the issue of electric vehicles (EVs).

The ambassador, however, told the meeting that disputes were “normal” but that “some progress” had been made in recent talks between the two sides in order to resolve outstanding issues, such as EVs.

He said, “Dialogue is always the best solution. Trade wars and tariffs produce no winners and are not the way to settle difficulties or differences. They lead to just more chaos and create more problems and not just for the countries directly involved  but the whole world.

“The best approach is dialogue otherwise you may end up with no trade. It is natural for there to be disputes from time to time and that is why things like dialogue and the WTO are so important.”

“This is how the trading system has worked for years and, I hope, will continue to do so. Talking works far more than tariffs.”

 China has said Europe should drop its export controls on certain high-tech products, including semiconductors, as well as tariffs on Chinese electric vehicles (EVs). Beijing, in its turn, has been opening up sectors such as telecommunications, banking or manufacturing for foreign investment.

The ambassador warned that “complex issues” did not always have “quick and easy solutions” and bemoaned what he called a “lack of mutual trust and understanding” between the West and China.

He said: “That is precisely why we need to open our minds in order to find solutions to problems. Dialogue is the best way forward.”

On Ukraine, he strongly countered Western media claims that China was supporting Russia in the conflict, saying: “This is just not true at all.”

He said China was a “friend” to Ukraine and noted that many other nations had continued to trade with Russia during the war.

But he added: “The war has taken its toll and the sooner it is over the better. China will continue to do all it can to facilitate peace. China will continue to be a force for peace.”

Turning to climate change, the ambassador, in his first visit to the press club, outlined the efforts his country is making to reduce global warming, saying that, last year, the share of renewables in its energy mix had (for the first time) overtaken coal and fossil fuels.

He conceded that China had “learned a lot” from the U.S and EU on climate change issues and was treating the matter with “real seriousness”.

Solar and wind were now vital components of the energy mix in China but he insisted that coal still had a “very important role to play”.

He said: “It is all about striking the right balance between energy needs and environmental concerns. Both are important.”

Efforts have been made in the last few weeks to defuse any tensions with EU Economic Commissioner Valdis Dombrovskis saying separately that the easing of trade tensions between the United States and China is a step in the right direction but that the reduction of U.S tariffs was for 90 days and the tariff rates that remained were still high.

The ambassador pointed to the importance of the Volvo car plant in Gent, Flanders as an example of the added value China was, he said, able to provide to EU countries like Belgium.

Owned by a Chinese conglomerate, the plant employees 7,000 people (“and not a single Chinese person”) and is the biggest employer in Flanders.

“This shows what co-operation can do in improving the competitiveness of a European country.”

President Xi Jinping said this month that China was ready to work with EU leaders to expand mutual openness and properly handle frictions and differences.His remarks on May 6 came on the 50th anniversary of diplomatic ties between China and the EU as they work to thaw ties amid global trade uncertainty fuelled by sweeping U.S tariffs.

While not citing this speech directly the ambassador echoed the sentiments of the Chinese president, saying better “mutual understanding” would help both sides.

He pointed out, in conclusion, that the EU and  China trades an estimated $2.6 bn every day of the year and that trade between the two has rocketed “300 fold” since the 1970s and 1980s. Back then it was about $2.4bn pa but is now some $780bn, he said.

Despite the way the EU-China relationship was sometimes portrayed in the media he said: “We are not in a state of conflict and nor is there a  sort of cold war between us.

“China does not pose a threat to Europe or the West. How could it?”

All eyes now turn to a key EU and China trade summit in the summer when many of the issues the ambassador raised will again come firmly under the international spotlight.

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