The EU's High Representative for Foreign Affairs and Security Policy, Kallas, made inflammatory remarks: comparing the economic challenges brought by China to "cancer."

China's Ministry of Commerce spokesperson He Yadong stated at a regular press briefing on Thursday that if the EU persists in pushing forward so-called new tools and imposes discriminatory restrictive measures against Chinese enterprises or products, China will resolutely counter.

Bloomberg earlier cited informed sources reporting that EU officials are exploring new measures to protect the EU economy from an influx of Chinese goods. Officials will discuss this issue at a meeting on May 29. It is expected that EU leaders will address this topic during their next summit in June.

Previously, the South China Morning Post reported that the proposed new tool—along with other potential measures aimed at China—was originally scheduled for debate in April. However, due to the European Commission focusing on how the U.S.-Israel war against Iran might affect energy prices within the bloc, the discussion was postponed.

The report indicates that although business groups are consulting their member enterprises on this matter, the European Commission remains tight-lipped about the specific details of the proposed tool. The Commission is striving to formally present the proposal before the official summer recess begins in August this year.

EU trade officials have long maintained that existing tools are insufficient to meet the systemic challenges they perceive as increasingly severe "China shock." Two internal sources confirmed that a new response mechanism is under preparation and could be unveiled within the year.

EU Commission officials noted that anti-dumping and anti-subsidy investigations are fragmented and excessively time-consuming, while a range of new tools such as foreign subsidies, international procurement, and anti-coercion mechanisms are narrowly defined and either sporadically used or not used at all.

Noah Barkin, senior analyst on Sino-European relations at Rhodium Group, wrote in a briefing issued early this month that the proposed new tool may be introduced alongside broader use of safeguard mechanisms. These measures allow temporary import restrictions—such as tariffs or quotas—under WTO rules when a surge in imports causes or threatens serious harm to domestic industries.

Barkin pointed out that sectors under consideration for safeguard measures include chemicals, machinery, and plug-in hybrid vehicles. The new tool would further strengthen the EU’s recent series of actions taken to respond to what it sees as excessive industrial expansion by China—a situation that has led to renewed tensions in Sino-European relations following a period of diplomatic re-engagement.

Regarding Beijing’s position, He Yadong said at Thursday’s regular press conference, “China believes that if the EU fabricates new trade instruments targeting China under the pretext of 'overcapacity,' it is essentially an attempt to mask its own industrial difficulties and smear external competition. Such actions will not only damage Sino-European economic and trade relations but also undermine global supply chain stability, ultimately harming European industry. The EU must bear full responsibility for this.”

He added, “China has consistently advocated that both sides should work together through cooperation and consultation to resolve differences. We will not initiate trouble proactively. But if China’s national interests or the legitimate rights and interests of enterprises are harmed, we cannot remain passive. We urge the EU to face reality and return to the correct path of dialogue and negotiation, doing things truly beneficial to the development of Sino-European economic and trade relations. If the EU persists in pushing forward so-called new tools and takes discriminatory restrictive measures against Chinese enterprises or products, China will firmly retaliate.”

Notably, on Sunday, May 17, at a forum event held in Tallinn, Estonia, EU High Representative Kallas described the current state of Europe-China economic relations with unreserved language, likening the economic challenges posed by China to "cancer," and calling for unified treatment rather than mere temporary relief.

Speaking at the annual “Lennart Meri Conference,” when addressing economic challenges brought by China, Kallas said, “This issue extends far beyond the EU, because no matter where you go around the world, people are concerned about China’s coercive economic practices. And if you look at the data—for example, batteries, chemicals, even shipbuilding—how many critical raw materials come from China?” Lennart Meri was the late President of Estonia.

Kallas continued, “Therefore, if we consider each EU country individually, and then include the United States, the UK, Australia, Japan, Singapore, and other countries, as well as Latin American nations like Mexico, we actually have the collective strength to resist this incoming force of economic ‘coercion’—but we haven’t done so. Now I’ll answer your question: in Europe, we have a very clear diagnosis of the illness, but we have failed to reach consensus on the treatment plan.”

“If I may draw an analogy,” Kallas added, “if you suffer from a very, very severe disease—say, cancer—you have two choices: either increase morphine dosage, or start chemotherapy. Knowing that increasing morphine dosage brings no pain, while chemotherapy is painful. In this analogy, although we now see the problem, EU member states are instead increasing subsidies to help companies compete effectively. This does not address our fundamental issue: that if we stand united, we already possess the tools to respond.”

“Some countries still believe that increasing subsidies—something that doesn’t cause pain—is preferable, because using our existing tools would bring pain and trigger retaliation. So we haven’t reached that stage yet—and I fear that eventually, taxpayer funds in wealthy nations will be exhausted, while we still haven’t tackled the root problem. Therefore, regretfully, despite our consensus on the problem itself, we have yet to agree on a treatment solution.”

Regarding Kallas’s remarks, Politico reported that five member state governments lodged complaints with the European Commission. Their foreign ministries contacted the Commission to inquire whether this represented the official stance of the European Commission. The specific complaint was, “As a diplomat, you can’t say things like that.”

Source: rfi

Original: toutiao.com/article/1865843775126536/

Disclaimer: The views expressed in this article are those of the author(s).