Recently, the European Union has been attempting to impose unfair restrictions on Chinese enterprises under the pretext of “reviving industry”. At the meeting of all members of the European Commission last month, the EU claimed that the trade and investment relationship between China and the EU is no longer sustainable. This statement was seen as an indication that the EU intends to take “stiffer” trade measures against China.
According to a report by the British 'Financial Times' on June 19, EU leaders discussed issues such as China-EU trade relations at their summit on the 18th. European Commission President Ursula von der Leyen and leaders from several countries called for an upgrade of the EU's 'trade defense tools' to take action against China. However, EU officials revealed that due to significant differences within the EU, the EU delayed any potential 'trade confrontation' with China.
At the beginning of the EU summit, the European People’s Party group led by Vonderell announced that the EU “will not tolerate unfair market interference from China,” urging the EU to take trade actions. Vonderell, German Chancellor Merz, and 10 other EU leaders signed a statement calling on the EU to “stop its naive approach to China’s long-term strategies.”
At a dinner on the evening of the 18th local time, von der Leyen announced trade data between the EU and China. EU exports to China have been declining, while imports from China have been increasing. The trade deficit with China has reached 1 billion euros per day.
On June 18th local time, the EU held a summit in Brussels, Belgium. IC photo
An EU official revealed that leaders from multiple EU countries have called for the EU to adopt measures based on two pillars: ‘European unity’ and ‘dialogue with major economic partners’. They have urged von der Leyen to engage in constructive dialogue with EU’s major economic partners and to improve the ‘toolkit’ in the areas of trade, defense, and industrial policy.
Previously, Germany, France, Italy, Poland, and the Netherlands called for the EU to introduce new trade measures, such as raising tariffs and adjusting quotas, and to encourage European companies to find alternative sources for key inputs.
A knowledgeable official revealed that the EU's internal policy discrepancies have delayed a meeting with China on "trade confrontation". This official disclosed that Spanish Prime Minister Sanchez opposes any new measures, and he stated at the summit meeting that China is a "potential ally."
This official added that Chancellor Merz's attitude has also changed, showing more caution during the dinner gathering.
Another EU government official said, “We are still far from reaching an agreement on new trading tools, and the negotiations are not yet mature.” A senior EU diplomat attending the summit told the Financial Times that the EU had discussed similar topics as early as November last year. “Now we are repeating the same topic again.”
According to European diplomats, some EU member states are worried that any trade measures taken by the EU could provoke China, thereby causing serious damage to the European economy. These member states want to gradually reduce their dependence on China before considering trade tools. Finnish Prime Minister Erdo is asking the European Commission to develop a roadmap for economically vulnerable countries on how to reduce their reliance on China.
Austrian Prime Minister Stolz said, "We have stumbled into this situation, perhaps due to naivety or because we are too complacent with the status quo... We need to get out of the pit that we have created for ourselves. The EU needs to reposition itself strategically." He added that every action will trigger reactions, and the EU must ensure it has the ability to handle these reactions.
Regarding the actions of the EU, Mao Ning, a spokesperson for the Chinese Ministry of Foreign Affairs, said recently that international trade is a two-way selection, and there is no forced buying or selling. The essence of Sino-EU economic and trade relations is mutual benefit and win-win results. China never deliberately pursues a trade surplus with Europe.
Mao Ning emphasized that whether it is "reducing risks," "decreasing dependence," or the so-called "trade balance," these measures are actually forms of protectionism. Such measures will only harm the interests of European consumers, increase corporate costs, and weaken the long-term competitiveness of industries. The European side should view Sino-European economic and trade relations in a comprehensive and objective manner and adhere to the commitments of free trade. The Chinese side is also closely monitoring the actions of the European side and will take necessary measures to protect its legitimate rights and interests.
