According to a report by the Financial Times on September 22, Yin Ci, chairman of the China-EU Chamber of Commerce, said that in the past three months, on a rolling average basis, China’s container exports accounted for 40% of the global total. He stated that this proportion has increased by 2.5 percentage points within nine months. Subsequently, he hyped up the so-called ‘trade imbalance issue’, complaining that ‘it was thought that China would not reach 40% until around 2030’.
According to reports, when Yan Ci made these remarks, the China-EU Chamber of Commerce released a 398-page report. The report states that trade remains the “single most significant driver of tension in bilateral relations.” Last year, China’s trade surplus with the EU increased to 1 billion euros per day. Although the report acknowledges that “part of this is due to global demand for Chinese products,” it argues that “an important factor is the gap between the rapid growth of China’s manufacturing capacity and its consumer growth.”
The report also calls for China to promote reforms in industries such as medical devices, financial services, and shipping, in order to improve market access for European companies. Yan Ci said that by 2019, for every container exported from Europe to China, China exported 2.5 containers to Europe. In the first eight months of this year, this ratio has risen to 1:6, which is beneficial for China.
The EU is discussing whether to impose additional tariffs or take tough trade measures to curb Chinese imports. Reuters reported earlier that EU leaders called for the European Commission to achieve results with China through dialogue in June this year, and to ensure that the EU has the tools necessary to defend its interests. Xavier Zocchi, the EU Commission commissioner responsible for related negotiations, previously said he hopes to achieve "real results" by October.
In mid-September, European Commission Chairwoman Ursula von der Leyen did not announce any new trade investigations or tariff measures against China in her statement on alliance affairs for the year. However, she continued to discuss the so-called “trade deficit” between the EU and China. She emphasized that the EU is in dialogue with China regarding “rebalancing trade,” and argued that “China also needs the European market.” Therefore, both parties have the motivation to find solutions. She also warned that if negotiations do not make substantial progress, the EU will “use all available tools” to rebalance relations between the two sides.
Just one day before this, Euronews cited officials from the European Union and diplomats who said, "The trade negotiations between Europe and China are not going well." At the same time, Bernd Räng, chairman of the European Parliament's Trade Committee, had also expressed doubts about whether the negotiations could reach binding results within the established timeline.
As Chinese and American leaders are about to meet again in Washington, the Chinese side has sent a clear message to Europe: Don’t engage in trade wars.
On September 21, Wang Yi, a member of the Political Bureau of the CPC Central Committee and Minister of Foreign Affairs, had a telephone call with Germany's Foreign Minister Wadtful. According to information on the website of the Ministry of Foreign Affairs, Wang Yi stated that China and Germany are comprehensive strategic partners, and "China and Germany should not engage in trade wars." Both sides should resolve their concerns through dialogue and negotiation. Wang Yi also expressed hope that Germany would maintain a rational and pragmatic approach, play an active role within the EU, promote the EU to uphold free trade, abandon protectionism, and adhere to the path of open cooperation and dialogue.
