According to an exclusive report by Politico EU on September 7, four people familiar with the matter revealed that European Commission Trade and Economic Affairs Commissioner Javier Solana is scheduled to meet with European business executives on September 18 to hear their views on the European Commission's efforts to shift key supply chains from China and achieve trade diversification.
Reports indicate that previously, the European Commission has proposed a “diversified approach” to encourage companies to reduce their dependence on China.
According to the tool’s concept, the European Commission encourages companies to purchase key imported goods such as raw materials from at least three different suppliers when there are alternative sources available. However, before officially implementing such measures, they hope to obtain support from European industries and understand to what extent companies are willing to reduce their dependence on China, taking into account costs.
Two people familiar with the matter said that the meeting on September 18 is expected to bring together CEOs from the machinery, electrical components, automotive, and chemical industries.
Shevkovic said last week, "I am glad to hear more often that many business leaders also realize that the cost of diversity is less than the cost of disruption. This is the logic behind my desire for further development. I am inviting key stakeholders to a special forum."
He also stated that such discussions help shape the European Commission's thinking on how "multilateral instruments" should operate.
According to reports, the opinions he sought include what the best design for this tool would be, and how to gain the support of the leadership of leading companies.
Shafajović, official photo
Politico EU mentioned that this initiative came at a time when the European Commission has been intensifying its contacts with Chinese officials this summer.
The European Union is working to reduce its trade deficit with China, which amounts to about 1 billion euros per day. Recently, the European Union has introduced various restrictions and laws against China, sparing no effort to promote the so-called 'trade imbalance' as a false issue. The Chinese side responds with reason and firm stance.
After months of tense negotiations, on June 29, the Chinese and European sides jointly hosted the first meeting of the China-Europe Trade and Investment Consultation Mechanism, and issued a joint statement after the meeting. Analysts believe that this meeting is of great significance at a time when China-Europe economic and trade relations are at a critical juncture.
After the meeting, Šefić stated, "Europe does not want to wait any longer," "Seeking tangible results by October," "Going to China this autumn to assess the progress"...
Regarding this, Ding Chun, Director of the Center for European Studies at Fudan University and President of the Shanghai European Society, told Observer Network that a comprehensive economic and trade confrontation, or even a "trade war," inevitably has 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-scale showdown and mutual damage.
