A few hours before meeting with Xi Jinping in Paris, the leader of the Community Executive emphasizes that the EU “cannot accept these market-distorting practices.”
The president of the European Commission will tell the Chinese president that the European Union (EU) “cannot” continue accepting large Chinese subsidies, which cause unfair competition with European companies, stressing that trade imbalances “must be resolved.”
“With regard to economic relations with China, I have made clear that the current imbalances in market access are not sustainable and must be resolved. China currently produces, with heavy subsidies, more than it sells, due to its weak domestic demand. This situation is causing an oversupply of subsidized Chinese products, such as electric vehicles and steel, which is leading to unfair trade,” says Ursula von der Leyen, in a statement released in Brussels.
A few hours before meeting in Paris with Xi Jinping, who is now beginning a state visit to Europe, the leader of the community executive emphasizes that the EU “cannot accept these market distortion practices that could lead to deindustrialization in Europe.”
“We must act to ensure that competition is fair and not distorted,” highlights Ursula von der Leyen.
For this reason, the official adds that she will encourage “the Chinese Government to resolve, in the short term, the issue of excess capacity” and will promote a debate on “the distortions of the Chinese market” with the G7 countries and emerging economies.
The stance comes at a time when the EU is carrying out several investigations into alleged illegal Chinese subsidies to companies operating in the community bloc.
What is at stake is a recent investigation into suspicions of unfair trade in biofuels from China in the single market, in which Brussels imposes retaliatory measures, such as customs tariffs, if “dumping” is discovered.
Also analyzed are alleged illegal subsidies to Chinese wind turbine manufacturers in Spain, Greece, France, Romania and Bulgaria.
More advanced is the investigation launched last October into Chinese state subsidies to manufacturers of electric cars, vehicles that quickly entered the EU market and are sold at a much lower price than those of EU competitors.
According to data from the European Commission, Chinese electric cars, which recently entered the EU, already represent 8% of the total market, being 20% cheaper compared to the European competition.
Today, Chinese President Xi Jinping arrived in France for a state visit to Europe.
Xi Jinping makes this trip at a time when the continent is divided over how to confront the growing power of Beijing and the rivalry between the United States and China, although there are efforts to deepen post-Covid-19 pandemic relations.
On Monday, French President Emmanuel Macron will offer the Chinese leader the formal honors of a state visit and then the two will meet with Ursula von der Leyen.
This meeting should include European calls for fairer trade policies and for China to use its influence with Russia to end the invasion of Ukraine.
In 2022, European trade with China was marked by a trade deficit of around €396 billion, a high of at least 10 years, taking into account community imports of €626 billion and exports to the Chinese bloc of 230 billion.
Source: Observadora
