The European Commission reiterated this Monday to China that the commercial ties between both parties need to be "recalibrated" in order to ensure a balanced and reciprocal framework for European companies and interests, after Beijing has threatened with reprisals against the Twenty-Seven if they continue to adopt measures against global industrial overcapacity and react with tariffs to illegal subsidies to Chinese companies.
"We want the trade and investment relationship between the European Union and China to reach its full potential, to achieve mutual benefit. But for this to happen, as we have said on repeated occasions, it must be readjusted to be more reciprocal, fairer, and better founded," summarized the European Executive's trade spokesperson, Olof Gill, at a press conference in Brussels.
This maintains the friction between Brussels and Beijing, after the College of Commissioners of the Executive led by Ursula von der Leyen held an "orientation debate" last Friday on the relationship with the Asian giant and the roadmap to follow. This internal exchange comes in a context in which several community partners, such as Italy and France, are calling for stronger countermeasures against unfair competition from Chinese manufacturers, while others, such as Germany, the Netherlands, and Spain, advocate for a more prudent approach so as not to jeopardize investments.
The community spokesperson wanted to emphasize this Monday that the discussion among the commissioners last week was an occasion for "in-depth" reflection and not a meeting intended to finalize political decisions or approve specific measures. However, he admitted that the conclusions will serve as a basis for future higher-level debates throughout this month, such as those planned at the G7 and at the summit of EU heads of state and government to be held in Brussels on the 18th and 19th.
Gill insisted that the commitment to maintain dialogue with Beijing remains firm, because it is the instrument with which the European Union intends to address the issues that "concern" it, reduce trade tensions, and move towards a framework for the exchange of goods, services, and investments with China that exploits "all mutual potential"; although he stressed that, to achieve this, Brussels considers it essential to "recalibrate" the relationship, so that "they are more reciprocal, fair, and better founded."
Furthermore, the European Commission's chief spokesperson, Paula Pinho, stressed that China is a "critical partner" for the Union with which it wants to preserve an open and effective channel of dialogue and, in this regard, pointed out that it will be "crucial" for both the EU itself and the Member States to speak out "united, with a single voice" and not from 27 divergent positions.
At the end of the College of Commissioners' debate on Friday, Brussels warned that EU-China relations in their current configuration "are not sustainable," and therefore the Union must respond in a "forceful and coherent" manner to reorient economic ties with a country it continues to see as a "fundamental partner."
"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.
Among the main open fronts between the EU and China is the mechanism to shield the European steel industry from global overproduction, the main origin of which is attributed to Chinese producers. This system will allow the Union to drastically cut the volume of steel that can enter the single market duty-free and raise the levies applicable to imports exceeding that threshold to 50%.
Beijing stated last week that it is holding talks with the Europeans to find a solution within the framework of the World Trade Organization (WTO) that avoids these limitations, something Brussels has not confirmed, although it has indicated that it remains in contact with other partners within the multilateral organization.
On the eve of the debate held on Friday in Brussels, the Chinese government had already warned, through a spokesperson for its economic ministry, that any "discrimination" that the European Union applies to Chinese companies or products will be met with "countermeasures to safeguard its legitimate rights and interests" by Beijing.