Von der Leyen makes clear announcement to China
China is threatened with punitive EU tariffs on e-cars and sanctions for companies that supply Russia with products suitable for war. EU Commission President von der Leyen insisted on these possible measures shortly before her visit to Beijing. The EU "will not tolerate" the imbalance in trade relations.
Ahead of the EU-China summit on Thursday, Commission President Ursula von der Leyen has called on Beijing to compromise on trade disputes. "The European heads of state and government will not tolerate an imbalance in trade relations in the long term," she told the AFP news agency in an interview with several agencies. "We have instruments at our disposal to protect our market," she emphasized. China must also dismantle trade barriers for European companies.
"The trade imbalance has doubled in the past two years to almost 400 billion euros," said von der Leyen in Brussels. It was "also in China's interest" to make decisions at the summit in coordination with the Europeans.
China exports three times as much to the EU as vice versa, emphasized von der Leyen. "If three containers go from China to Europe, two of these containers return empty." This makes the imbalance "visible". The German Commission President also criticized the limited market access for European companies in China. "We see preferential treatment for Chinese companies," she said. The EU Commission is also looking into the issue of "direct and indirect subsidies" by Beijing.
China could retaliate with tariffs
In September, von der Leyen announced a competition investigation into Chinese subsidies for electric cars. She accused Beijing of "flooding" the global markets with artificially cheap vehicles. In response to the threat of EU punitive tariffs, the Commission President said that the investigation would take some time.
A high-ranking EU official emphasized that, as in the past, the Europeans would have to expect Chinese retaliatory measures. He was alluding to the EU's punitive tariffs on Chinese solar modules in 2013 and Beijing's threats of sanctions against European wine. "If they want to retaliate, they will probably hit other sectors, politically sensitive sectors," said the EU official.
The German economy warned against trade conflicts or a subsidy race with the important partner China. DIHK President Peter Adrian called for the removal of trade barriers to open up new market opportunities in the People's Republic, for example in renewable energies or the services sector. "Where there are market distortions, however, the EU must also defend itself accordingly with anti-dumping measures," he emphasized.
China had imposed entry bans on EU politicians in 2021
Von der Leyen and EU Council President Charles Michel are expected in Beijing on Thursday. It will be the first face-to-face meeting with Chinese President Xi Jinping and head of government Li Qiang since 2019, following a video summit last year. The Vice-Chair of the China delegation in the European Parliament, René Repasi, called on von der Leyen to remind China of its responsibility in the Ukraine war. China must exert influence on Russia and finally name the war of aggression as such, Repasi demanded.
The EU accuses Chinese companies of supplying war-ready products and technologies to Russia and thus helping President Vladimir Putin to circumvent Europe's sanctions. If Beijing does not dispel this suspicion, companies from mainland China could be added to the EU sanctions list for the first time, according to diplomats. In June, the EU had already imposed sanctions on three Russian companies based in Hong Kong. Von der Leyen emphasized that there is an "intensive dialogue with China" in this regard.
Repasi also called on the Commission President to address human rights and environmental violations in China. Von der Leyen said she wants to call on Beijing to lift the sanctions against European politicians. China had imposed entry bans and other measures in 2021, including against MEP and former co-leader of the German Greens, Reinhard Bütikofer. This was Beijing's response to EU sanctions due to the oppression of the Muslim Uyghur minority.
Read also:
- During her visit to Beijing, EU Commission President Ursula von der Leyen urged China to find common ground on trade disputes, stressing that the EU "will not tolerate" an imbalance in trade relations in the long term.
- The EU-China summit on Thursday comes as the EU Commission threatens China with punitive tariffs on e-cars and sanctions for companies supplying Russia with war-ready products, citing an imbalance in trade relations of nearly 400 billion euros.
- In response to the EU's threat of punitive tariffs on Chinese e-cars, a high-ranking EU official anticipated Chinese retaliatory measures, alluding to past EU punitive tariffs on Chinese solar modules and threats of sanctions against European wine.
- Following the imposition of entry bans and other measures on European politicians by China in 2021, EU Council President Charles Michel and Von der Leyen are expected to address these issues during their face-to-face meeting with Chinese President Xi Jinping on Thursday.
Source: www.ntv.de
