The European Union (EU) has recently voiced concerns about the substantial trade imbalance with China.
This issue surfaces just before a key summit in Beijing. The EU favors “negotiated solutions” to this challenge.
European Commission President Ursula von der Leyen, in an AFP interview, underscored the EU’s unease with the trade disparity.
The EU’s trade deficit with China has soared to nearly 400 billion euros.
Von der Leyen mentioned the EU‘s ability to protect its market, noting the imbalance has doubled in the last two years.
Despite the challenge, the EU leans towards working out negotiated solutions. Von der Leyen believes these solutions would benefit both the EU and China.
Von der Leyen and European Council President Charles Michel will attend the Beijing summit.
This meeting is significant, marking the first high-level EU-China interaction since 2019.
The European Council represents EU member states, and the Commission is the bloc’s executive branch.
Key topics at the summit include trade, the Ukraine conflict, and the Gaza Strip situation.
Von der Leyen has clarified that the EU does not intend to halt trade with China. Instead, the focus is on addressing the risks inherent in the current trade relationship.
The summit is seen as a “summit of choices” by Von der Leyen. The EU is contemplating various approaches to rebalance the trade relationship.
She highlighted the glaring imbalance, with Chinese exports to the EU being significantly higher than EU exports to China.
The Beijing discussions will also delve into hidden subsidies that favor Chinese companies and market rules in China.
Von der Leyen expressed concern about the unequal playing field for European companies in China due to preferential treatment towards Chinese firms.
The EU seeks fair competition in this regard.
The summit will also discuss the issue of Chinese electric vehicles, which are currently under investigation by the EU for alleged illegal subsidies.
An additional sensitive topic is the EU’s sanctions against Russia following the Ukraine conflict.
Some Chinese companies are accused of supporting Russia’s military efforts in Ukraine.
The EU is actively engaging with China on these matters, urging China to take appropriate action.