The EU will not be able to keep its markets open to Chinese exports unless Beijing takes decisive action to rebalance their trading relationship, European Commission President Ursula von der Leyen said after a summit on Thursday.
“Unlike other markets, Europe keeps its markets open to Chinese goods. However, this openness is not matched by China,” von der Leyen told a news conference after meeting Chinese President Xi Jinping and Premier Li Qiang in Beijing.
She highlighted that the EU’s trade deficit with China had doubled over the past decade, to more than €300 billion. “We have reached an inflection point,” she said. “Trade must become more balanced.”
Expectations on trade progress had been low ahead of the one-day summit, with a fight over the EU’s imposition of anti-subsidy duties on Chinese electric vehicles last year still unresolved. In another tit-for-tat dispute, the two sides have closed their public markets to each other for tenders for medical devices.
Von der Leyen said that leaders in their discussions had focused on market access, where she highlighted the principle of reciprocity and said the two sides had agreed to work on “concrete solutions” on public procurement.
On overcapacity — China’s excess production of subsidized products such as steel, solar panels or batteries — she said Beijing had shown willingness to reduce its export surpluses by boosting domestic consumption. “Without progress it will be very difficult for the European Union to maintain openness,” she said, highlighting the diversion of trade flows from other markets that have closed the door to Chinese exports.
Finally, on export controls, von der Leyen said it was vital to maintain reliable supplies of critical raw materials in which China is the dominant supplier. She acknowledged Beijing’s efforts on fast-tracking deliveries and developing a support mechanism for business that need to access such minerals for their operations.
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