The EU is more united than it has been in years on taking a tougher line on China’s trade imbalance, following a shift towards a firmer stance by Germany, says Noah Barkin, senior adviser at Rhodium Group and author of the Watching China in Europe newsletter.

The EU has set an October deadline to address its growing trade deficit with China or face tougher measures. Barkin said Beijing has “retaliation dominance in the short term”, but the EU holds leverage through access to its single market and believes China also wants to avoid escalation. He was speaking on Special Report with Maria.