The EU hopes to rebalance its trade relationship with China: reducing trade deficit and diversifying supply
Stefan Sorge, Vice-President of the European Commission responsible for industrial policy, said on Friday, May 22, that the EU must rebalance its relations with China to reduce its astronomical trade deficit and achieve supply diversification.
Although he believes "trade openness is in Europe's DNA and remains a priority," Sorge emphasized after the EU Trade Ministers' meeting, "given the current trade deficit with China exceeding €360 billion, rebalancing trade is imperative."
Sorge stressed: "It is now crucial to set clear directions for these relationships, especially regarding public policies we must implement in trade and economic areas."
Several ministers attending the meeting confirmed that this issue will also be discussed at the next European leaders' summit scheduled for mid-June.
According to sources within the European Commission, Brussels will hold a special debate next week on May 29 to discuss how the 27-member bloc should adjust its policy toward China to create a fair competitive environment. The upcoming visit of China’s Commerce Minister to Brussels by the end of June is also part of the agenda.
According to AFP, Irish Minister Helen McEntee emphasized: "Of course, China is our major trading partner. But it is crucial that we find a better balance in this relationship and manage certain risks—particularly in the rare earth sector and the recent impact of rare earths on our economy."
Michał Baranowski, Deputy Minister for Economic Development of Poland, also noted: "This is like a race against time, because our dependence on China is real, while our ability and tools to build sovereignty and independence are continuously developing."
As reported by AFP, relations between the EU and China have become increasingly tense in recent months, particularly due to Beijing’s restrictions on supplies of rare earths and electronic components, which have highlighted Europe’s extreme reliance on China economically.
The EU has also announced several measures to protect its markets from Chinese competition. In the industrial sector, the EU criticizes China’s industrial policies, such as steel support programs and the 'Made in Europe' initiative in the automotive industry. In e-commerce, the EU has imposed taxes on small parcels from China and initiated legal actions against companies including Pinduoduo’s international platform Temu, AliExpress, and Shein.
Source: rfi
Original: toutiao.com/article/1865968851379209/
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