China and Europe make up after averting trade war

China and the European Union sought to mend ties on Thursday after narrowly avoiding a trade war this year, but the EU’s trade chief told Beijing to stop handing out state subsidies that Brussels says are illegal.

Europe is China’s most important trading partner and for the EU, China is second only to the United States, but the bilateral relationship has been bedevilled by a series of damaging trade rows ranging from steel and wine to solar panels.

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