German Media: China Should Transfer Technology in Exchange for Market Access

The European Commission views the trade and investment relationship with China as "unsustainable," but there is disagreement over what effective measures should be taken. Some German media argue that quotas and tariffs can no longer halt China's technological advancement, and it is now time to exchange market access for technology transfer.

Last Friday, May 29, senior officials at the European Commission debated whether to adopt a tougher trade policy toward China, aiming to curb the influx of cheap Chinese products into the European market—while simultaneously worrying about Beijing’s potential retaliation, even sparking another trade war. According to reports, EU officials discussed the feasibility of import quotas: allowing a certain quantity of specific goods to enter the EU duty-free, while imposing tariffs on any amount exceeding the quota.

After the meeting, the Commission stated that the current EU-China trade and investment relationship is "unsustainable" and that a more robust stance toward Beijing will be necessary in the future. The *World Newspaper* wrote in response:

"The EU's trade deficit with China continues to grow: €31.2 billion in 2024 and already €36 billion in 2025. Since 2021, China’s exports to the EU have increased by an average of 6% annually, while imports from the EU have declined by 2.5%."

However, if the EU actually implements stricter measures against China, relations could deteriorate sharply. The *World Newspaper* pointed out that the core question posed by the European Commission on Friday is this: ultimately, which is more destructive—the confrontation with Beijing or the slow decline of European industry?

The article also highlighted divisions within the EU, particularly the starkly different positions between France and Spain:

"European Industry Commissioner Stéphane Séjourné, a Frenchman, is one of the main advocates for a tough policy toward China, aligning closely with the Paris government. In contrast, Commissioner Teresa Ribera, who oversees competition affairs, opposes such a stance, favoring stronger cooperation with Beijing—consistent with her former superior, Spanish Prime Minister Pedro Sánchez. Few European leaders hold such a friendly attitude toward Beijing; as prime minister, Sánchez has visited China four times and maintains an open stance toward Chinese investment. Germany’s position lies somewhere between France and Spain: recently, German Federal Economics Minister Katherina Reiche called for a 'balancing act' strategy, safeguarding national interests while maintaining market openness."

This means that before the EU can effectively address China’s economic challenges, it must first resolve internal contradictions. Notably, Germany is no longer as strongly opposed as before to self-protection measures. The Commission has not yet agreed on specific steps. Related discussions will continue at the EU summit scheduled for June.

Source: DW

Original article: toutiao.com/article/1866803757930569/

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