The European Commission considers that the current situation of trade exchanges between the European Union and China "is not sustainable" and raises the need to articulate a "forceful and coherent" reaction to reorient economic relations with a country it continues to see as a "fundamental partner" for the community bloc.
This conclusion has become clear after an orientation debate held extraordinarily this Friday in the College of Commissioners, convened by the President of the European Executive, Ursula von der Leyen, with the aim of examining "the opportunities and challenges" posed by the link with the Asian giant, marked by recurrent tensions surrounding Beijing's illegal subsidies to its companies and the industrial overcapacity it generates.
"The current state of trade and investment relations is not sustainable. As economic and security interests become increasingly intertwined, the two dimensions will require a more forceful and robust response," EU sources said at the end of the discussion, about which Brussels has avoided offering additional details.
Despite this, the Community Executive insists on emphasizing that "China is a fundamental partner" for the European Union and, therefore, "engagement and dialogue will continue." The Commission defends that the EU must establish a framework that "reduces risks" in its relationship with Beijing, without this implying breaking existing ties.
The exchange of views among the commissioners aims to "feed" the conversations that the major powers will hold in the coming weeks within the G7 and the heads of state and government of the European Union at the summit on June 18 and 19 in Brussels, where a clash is expected between states favoring tougher trade measures, such as France and Italy, and those, such as Germany or Spain, advocating for a more prudent approach so as not to jeopardize investments.
Among the main open fronts between the EU and China is the mechanism designed to shield European steelmaking from global overproduction, the main source of which are Chinese manufacturers. This instrument will allow the Union to drastically reduce the volume of steel that can enter the single market without tariffs and to raise the duties applicable to imports exceeding that threshold by up to 50%.
Chinese authorities have assured this week that they are negotiating with the European side for an exit within the framework of the World Trade Organization (WTO) to circumvent these limitations, a point that Brussels has not confirmed, although it has acknowledged that it maintains contacts with other partners within the multilateral organization.
On the eve of the debate held this Friday in Brussels, the Chinese government warned on Thursday, through a spokesperson for its economic Ministry, that any "discrimination" that the European Union imposes on Chinese companies or products will be met by Beijing with "countermeasures to safeguard its legitimate rights and interests."