The President of the European Commission, Ursula von der Leyen, stated that the EU’s trade relations with China need to be balanced, noting that the European Union’s trade protection investigations regarding Chinese goods have significantly intensified in recent years.
On Thursday, Ursula von der Leyen said that if negotiations to reduce the EU’s record-high trade deficit with China do not yield a breakthrough, the European Union must be prepared to fully utilise trade protection measures. The European Commission has set October as the deadline for reaching an agreement with Beijing to balance trade relations.
Tensions and protection tools
Tensions between Brussels and Beijing remain high since the start of negotiations, which began in June last year. In the summer, China banned Chinese companies from taking part in EU antitrust investigations, while the European Commission continued to open new trade protection investigations due to suspicions of dumping Chinese goods on the European market.
“Dialogue with China remains necessary. But it must yield results. And when dialogue is not enough, we must be ready to fully use our measures,” von der Leyen said during a speech to the French business organization Medef.
The EU is facing a wave of cheap imports from China, which has increased by 45% over five years, the Commission President added. According to her, over the past year, 30 trade protection investigations have been opened — “almost three times the historical average.” “We are significantly intensifying investigations,” she said.
The EU’s trade deficit with China currently reaches 1 billion euros per day. “China is a key economic partner. And our approach is clear and consistent: reduce risks without breaking ties. But partnership does not mean accepting constant imbalance,” von der Leyen said.
Threat of trade war and “trade bazooka”
In recent months, Beijing and Brussels have found themselves on the brink of a trade war. China has repeatedly threatened retaliatory measures against the EU’s proposed regulatory changes, which could limit Chinese companies’ access to the European market. On Thursday, von der Leyen reminded that all EU member states currently have a trade deficit with China.
In June, EU leaders gave her a mandate to act to balance relations with China — both through dialogue and by using and reviewing trade protection measures. Among them is the so-called EU anti‑coercion instrument, which can be used in case of pressure from a foreign state to force the EU to change its policy.
This instrument, sometimes called the “trade bazooka,” allows the EU to take tough measures, including restricting access to public procurement or applying intellectual property rights measures. However, its application requires the support of a majority of the bloc’s member countries. It is currently unclear whether such support can be secured, as individual EU countries continue to develop bilateral trade with China, seeking access to its market and attracting Chinese investments.
Джерело: Euronews
