Trade Tensions: EU Ready to Counter China’s Trade Tactics

In response to escalating trade imbalances, Ursula von der Leyen, President of the European Commission, has issued a stern warning, affirming the European Union’s readiness to implement robust measures safeguarding its economic interests against China’s trade practices.

The President of the European Commission, Ursula von der Leyen, has stated that the European Union is ready to deploy all available instruments to protect its economy if China does not offer fair access to its markets.

In her remarks, reported by Bloomberg, she highlighted that heavily subsidised Chinese goods, such as electric vehicles and steel, have flooded the European market, and the world cannot absorb China’s excessive production.

EU-China Trade Takes Centre Stage During Xi Jinping’s Diplomatic Mission

Von der Leyen’s statement comes after talks in Paris with French President Emmanuel Macron and Chinese President Xi Jinping, who is on an official visit to France. Xi’s visit to France marks the first in five years, after which he will travel to Serbia and Hungary.

“To ensure fair trade, access to each other’s markets must also be reciprocal. We discussed how to make real progress on market access issues. I remain confident that greater progress can be achieved,” she emphasized.

It is noted that the EU is becoming tougher in its trade relations with China, echoing US concerns about excess capacities in the “green” industry sector, which are state-funded.

“A rhetorical shift has already been implemented in practice, as in the autumn of 2023, the EU launched an investigation into subsidies for Chinese electric vehicles, which could lead to new tariffs by July.

“The EU is also carefully examining other sectors, such as wind energy, solar energy, and railways,” the statement said.

Von der Leyen urged the Chinese government to address the issue of “structural excess capacities” as Beijing continues to heavily support its manufacturing sector while domestic demand remains stagnant.

Additionally, the President of the European Commission stated that she and Macron urged Xi to use his influence on Vladimir Putin to end the war in Ukraine, adding that China’s position on the conflict affects relations between Beijing and the EU.

Read also:

China’s Leader Xi Jinping Engages in Paris Talks: Trade and Ukraine in Focus

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