U.S. and E.U. End Aviation Trade Spat and Turn to China’s Rise

The agreement, coming as President Biden met European leaders, ends a 17-year dispute over aircraft subsidies.

BRUSSELS — The United States and Europe on Tuesday agreed to put aside a 17-year dispute over aircraft subsidies for Boeing and Airbus and work together to counter China’s global ambitions to dominate key industries. The agreement, which suspends the threat of billions of dollars in punitive tariffs on each other’s economies for five years, is a clear sign of President Biden’s seriousness in repairing relations with the European Union and getting the wealthy bloc on his side in what he regards as a generational challenge from the rise of a technologically advanced and autocratic China. Mr. Biden sees Europe as an ally, not an economic “foe” as former President Donald J. Trump did, and he has pledged to work with the European Union to counter China’s military, economic and technological ambitions. While Mr. Trump also saw the dangers of an unbound China, he did little to try to bring Europe along, instead punishing it with tariffs. Mr. Biden is convinced that, as Asia as a whole grows in population and wealth, the democratic world that believes in the rule of law and multilateral institutions must do more to protect its economies and values.