Last week, EU Trade Commissioner Maroš Šefčovič discussed a number of aspects of current EU-China trade tensions, which have become a bit more heated in recent weeks as the EU discusses a potential new instrument to address imbalances in its bilateral trade with China.

At the World Economic Forum today, both President Trump and EU Trade Commissioner Maroš Šefčovič offered comments on some big picture questions surrounding trade relations with China, with Trump complaining about trade deficits and unfairness and Šefčovič also noting concerns with trade imbalances.

Weighing in on the debate about trade imbalances, a group of IMF economists has released a report arguing that these imbalances are driven by macroeconomic forces rather than trade and industrial policies.