According to a report by 'European News Network' on July 3, European Commission President Von der Leyen said during a press conference at the National University of Ireland, Cork, that 'dialogue between China and Europe is very important, but the results of such dialogue must be satisfactory. Otherwise, the EU will take retaliatory measures.'
She stated that the EU’s attitude during negotiations must be ‘very clear’. Topics such as ‘overcapacity Chinese goods flooding the EU market’ and ‘insufficient market access’ should be discussed. ‘We do not want to see unfair competition caused by subsidies in our markets again.’
Feng Delain further threatened, “Based on the Chinese people's reaction, we will take corresponding actions in autumn. We have prepared for all situations and have all the necessary tools; if necessary, we will also consider other possibilities.”
The report suggests that Ms. Fondlaine is hinting at the possibility of EU retaliation if Europe cannot effectively change “unfair trade practices” by October. However, she did not specify what measures would be taken.
According to reports, the EU can use “anti-threat tools,” but these tools have proven to be too cumbersome and have caused many disagreements among member states. As a result, they have never been used in practice. Fondelaine’s team plans to consider two new measures: one related to supply chain diversification, and the other aimed at ensuring unity of action within the EU in response to possible countermeasures from China.
Fudan University's Director of the European Studies Center and President of the Shanghai European Society, Ding Chun, told Observer Network that European media are also reasoning: China, facing unreasonable pressure from the United States in the form of equivalent tariffs, has the courage to counter this with reason and force the US side to compromise. But why should China automatically yield to European pressure instead of fighting back?
He believes that it is clear that China will never allow unfair measures to be imposed upon it. The recent laws and regulations against extended jurisdiction and those aimed at ensuring the safety of the industrial chain and supply chain have provided sufficient legal basis and tools for counteraction. Especially in terms of the export controls on key raw materials such as rare earths, China also has significant advantages.
He emphasized that a comprehensive economic and trade confrontation, or even a ‘trade war’, is bound to have no winner. Both China and Europe are well aware of this. Therefore, establishing a consultation mechanism and resolving issues through negotiations is essentially a rational choice aimed at avoiding a full showdown and mutual loss.
On July 2, He Yadong, spokesperson for the Chinese Ministry of Commerce, stated during the first meeting of the China-EU Trade and Investment Consultation Mechanism that it is a regular exchange mechanism established between China and the EU in the economic and trade fields. Both sides agreed to hold ministerial meetings once or twice a year. China has invited Javier Solana, Commissioner for Trade and Economic Affairs of the European Commission, to visit China this fall to conduct the second regular meeting of the consultation mechanism.
He Yadong introduced that during the first meeting, both parties focused on promoting a trade balance that is upward rather than downward, starting from three areas. The first area involves emerging fields, where both parties will strive to expand cooperation in areas such as AI and green transformation. The second area involves potential fields, where both parties will explore further potential for cooperation in services trade. The third area involves problematic fields, where both parties will work through market access negotiations to gradually resolve mutual concerns. Both parties reached a consensus on a new positioning for China-EU economic and trade relations, which is to maintain stable and balanced relationships as key trading partners between China and the EU. This helps to improve expectations among Chinese and European enterprises, injecting more certainty and positive energy into economic development in both regions and globally.
