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“We must act to ensure that competition is fair and not distorted. Because fair competition is good for Europe, as it stimulates innovation and growth, as well as creating good jobs in Europe. I will encourage the Chinese government to address “production” overcapacities in the near term. At the same time, we will coordinate closely with the G7 countries and emerging economies that are increasingly affected by the distortions of the Chinese market.” This is what the president of the EU Commission, Ursula von der Leyen, explains in view of the trilateral with Emmanuel Macron and Xi Jinping which will be held this morning.
Dombrovkis: resolve the EU-China trade deficit, 400 billion
“Last year I outlined our economic approach to China. The EU must de-risk its relations, but not decouple from China. We have been very clear about our relations with China, which are among the most complex, but also among the most important,” recalls von der Leyen, who will see the Chinese and French presidents in Paris. “Over the past year, I have met President Xi twice and we discussed EU-China relations at length, from trade to climate, from global affairs to digital issues. On economic relations, I made it clear that current imbalances in market access are not sustainable and must be addressed. China currently produces, with massive subsidies, more than it sells due to weak domestic demand. This is leading to an oversupply of subsidized Chinese goods, such as electric vehicles and steel, resulting in unfair trade. Europe cannot accept these market distorting practices which could lead to the deindustrialisation of Europe,” emphasizes von der Leyen.