What’s going on here? China is taking a hard look at its imports of Europe’s cheese, as trade tensions escalate between the two economies. What does this mean? China thinks there’s something funky about the price of the bloc’s cheese, accusing Europe of exporting dairy wheels for less than they cost to make (a tactic that’s referred to as “dumping”). It’s launched a cheese probe to find out, interestingly announced just a day after the European Union said it would increase tariffs on imports of electric cars from China. That’d slap them with an additional 9% to 36% tax on top of the existing 10%. And this is just the latest in the tit-for-tat dispute between the two economic giants. Earlier this year, the EU determined that Chinese government cash injections were unfairly deflating its export prices, particularly on green machines like solar panels and wind turbines. Meanwhile, China’s been gnawing at Europe’s pork industry and taking shots at French cognac. Why should I care? Zooming out: Wave goodbye. Once an investor darling, China has seen an exodus of foreign cash as its economy struggles with a debilitating property crisis and sharply weaker consumer demand. Walmart's the latest company to get its skates on, announcing the sale of its 5% stake in online retailer JD.com – worth around $3.6 billion. Europe’s couture brands, meanwhile, have said a reluctant au revoir to Chinese customers as they’ve tightened their designer purse strings – at least until their economy is back on form. The bigger picture: Going nowhere. It’s not just the EU and China duking it out on trade: the US has thrown some punches too, and it seems intent on going a few more rounds. Higher tariffs can disrupt supply chains, increase prices for consumers, and take a toll on economic growth. So with the three of the world’s biggest trading nations ready to rumble, no economy is likely to go unbruised. | 
