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EU-China Relations Under Strain as Germany Shifts Position on Trade

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European Commission President Ursula von der Leyen held a meeting on that day to conduct a constructive discussion regarding EU-China relations. In a press release issued after the meeting, the European Commission stated that this constructive discussion provided all members of the European Commission with an opportunity to assess the relationship between the EU and China – including both opportunities and challenges.

Previously, some EU member states led by France demanded measures to protect their domestic industries. Germany has always warned against using extreme measures, in order to avoid provoking countermeasures from other countries.

A German government official revealed to Politico that Germany is willing to discuss additional trade defense measures. We agree to discuss measures to address overcapacity in the industry. The report believes that this statement indicates a change in Germanys position.

According to reports, even with German support, Fiedler still needs to coordinate with all the committee members to reach a unified position.

The first draft of the meeting minutes stated: China is an important partner. Both sides will continue to maintain contact and dialogue, with communication channels kept open. In subsequent revisions, the phrase communication channels kept open was removed. The European Commissions press office said that this oversight was due to a misinterpretation of handwritten notes.

The European Commission stated that the debate on that day will provide a basis for further discussions in the coming weeks, laying the groundwork for further discussions at the G7 meeting and the European Council (EU summit) in June.

While the EU is intensively discussing its policies towards China, German politicians are also sending high-level representatives to China for negotiations.

From May 26th to 29th, German Economy and Energy Minister Katharina Ryß made her first visit to China. A total of 40 executives from well-known German companies, including BASF, Siemens Energy, and ThyssenKrupp, accompanied her on this trip.

On Wednesday, Li Xi issued a warning in Beijing, stating that any measures taken by the EU against China must not harm Europes exports to China.

Layher stated that, as an export-oriented economy, Germany currently has two main demands: taking reasonable measures to address so-called unfair competition, while also ensuring that the export channels for German companies remain open.

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In the face of the successive restrictive policies introduced by the EU, Chinas stance and approach to dealing with these issues are quite clear.

The WeChat public account Yuyuan Tan Tian cited sources who said that China could initiate anti-discrimination investigations and safety assessments regarding the actions of the European side. The Ministry of Commerce has clearly stated that if Chinas national interests or corporate rights are harmed, China will take resolute measures to counter such actions. If the European Union continues to advocate for what they call capacity surplus measures, China will definitely take action immediately, adopting comprehensive countermeasures.