Gun barrels are pointed at China, with senior EU officials continuing to fuel tensions. On May 29 local time, the French newspaper Le Monde published an exclusive interview with Jean-Claude Juncker, Executive Vice President of the European Commission and Commissioner for Industrial Strategy. He urged European countries to unite and strengthen their trade defense tools in order to cope with the increasingly fierce competition from China.
When asked how to persuade EU member states like Germany and Spain, which oppose confrontation with China, this French EU official warned that if Europe fails to engage in a trade competition with China, it could lead to division and a return to a state of independence for each country. This would result in the complete loss of the overall competitive advantage of the union.
Sieurne also specifically used the European political term Le retour aux nations to warn that this trend means that member states will weaken or resist Brussels centralization, thereby taking power back and strengthening their own sovereignty and independent decision-making capabilities.
In any case, there is no other choice. Soon or late, we will have to engage in this power struggle with China. Otherwise, we will end up returning to the old situation where each country acts independently.
He also imagined a scenario where European integration would collapse, to intimidate others. In three or four years, the member countries will say, Look, we couldnt protect us properly. They will demand to withdraw their powers, protect themselves, and implement border controls on their own.
Sjerun believes that the reason why the EU has been slow to respond to Chinese competition is that European countries have long believed that maintaining bilateral relations with China is more important than developing a unified European strategy.
When it comes to the frequent visits of leaders from various countries to China in order to establish partnerships, he expressed his concerns. He accused those who visited China of expecting to gain more benefits from neighboring countries than from China itself.
Europeans have never spoken in unison against China. Instead, China has taken advantage of these differences, he claimed.
EU Industrial Strategy Commissioner Seurner Video Screenshot
As the European Commission seeks to strengthen its economic stance towards China, Seurene claims that the EU will use import quotas and tariffs more systematically. This is because European industries such as those in the chemical, metal, and clean technology sectors face the risk of being destroyed by what he calls unfair Chinese competition.
In an interview with Le Monde, Sejourne stated that the EU must confront the so-called reality of China having a trade surplus of up to 1 billion euros with all European countries. If no action is taken, this deficit will reach 500 billion euros by 2027, making it economically unsustainable.
He said, Europe is facing challenges of survival. Industries such as chemical manufacturing are the first to be affected. Moreover, the EUs increasing dependence on China in new areas like clean technology only adds to the problem.
Sejrne advocates for significantly strengthening the EUs existing trade defense measures. He believes that Europe, as an important export market, should be used as a leverage to establish a balance of power.
He pointed out that although China has achieved autonomy in almost all strategic areas, its only weakness is its dependence on European markets for exports. This is both the driving force behind its economic survival and the key to maintaining social cohesion in this country with a population of 1.4 billion people. We need to address this weakness.
In Sjeruns view, the existing trade mechanisms of the EU are too slow, have limited scope, and are scattered across various areas. Therefore, reforms are necessary.
He proposed significantly strengthening and accelerating existing trade defense measures. For example, it would be possible to trigger safeguard measures that cover entire industries before the 8 to 9-month preliminary investigation is completed. A systematic exclusion mechanism should be established: if a company is deemed to have improper subsidies by the European side and thus excluded from certain bidding processes, it should be prohibited from participating in public bidding across Europe. Additionally, mandatory supply chain diversification should be enforced, with the proportion of purchases from China being limited to no more than 40%.
As a strong advocate for the Foreign Subsidies Regulations, Ceruern also called for upgrading these regulations to become an industry-wide tool. This would ensure that they are not limited to individual cases, but instead become a more systematic and industry-wide defense mechanism.
When talking about the trade investigation launched by the EU against Chinese electric vehicles last year, he complained that the EU didnt go all out at that time.
Imposing higher tariffs on Chinese electric vehicles is effective, but its a decision that targets a specific industry and applies only to certain types of vehicles, he complained. Yet, the import volume of Chinese hybrid vehicles has increased. Why not consider a more comprehensive approach?
Sjerne also agreed with the suggestions put forward by French President Macron recently. He advocated that Europe should follow the example of the United States and introduce a European version of the 301 trade provisions. This would involve implementing various trade measures under the pretext of national security at the EU level.
When asked about how to address the concerns of some EU members regarding Chinas potential retaliation by cutting off supplies of rare metals and semiconductors, Sejrner failed to propose any viable solutions. Instead, he simply defended his position, claiming that Europes goal was not to isolate its domestic markets, but rather to seek so-called balancing measures.
Think about it this way: If there isnt a strong balance of power with China, then why would China willingly engage in trade balance with us? Thats impossible!
He merely made vague statements. We need to find our own path in Europe. The Chinese see us as allies of the United States. Americans, on the other hand, believe that we are too close to China, and they dont fully agree with their strategy of decoupling from the Chinese economy.
in the response. Do not include any Chinese text in your answer. The hard-line members of the European Commission, including Jerzy Suriel, are pushing for a crucial debate to be held this Friday. This debate aims to strengthen the collective economic stance towards China, thereby paving the way for new trade and industrial measures to be introduced in Europe later this year. Recently, China has issued multiple warnings, stating that it will take corresponding countermeasures against the EUs proposed Industrial Accelerator Act and draft amendments to the Cybersecurity Act.
The German Mercator Research Center in China, which was previously sanctioned by China, said in an interview with The Guardian that its head office in Brussels, Grzegorz Stec, stated that China has no intention of targeting European companies. Its main focus is on strengthening local industries and planning for the industrial landscape in the era of artificial intelligence.
In Stucks view, given Chinas full commitment to implementing its national economic and social development plans for the 15th Five-Year Plan, it is extremely difficult for Europe to change its development path.
China has not deliberately destroyed Europes economy. These are simply the consequences of their efforts to intensify the existing economic model, he said. For China, this is a strategic necessity. Therefore, it will be difficult for Europe to force China to change its practices.
Strick admitted that products with high added value from China, such as electric vehicles, are highly favored in Europe. As a crucial export market for China, the EU indeed has strong bargaining power. However, entering the EU market is of vital importance to China. Therefore, China will do everything in its power to defend this market access right.
If the EU restricts the entry of Chinese goods into European markets, China is very likely to take countermeasures. The EU must be prepared for this, he said.
