Frank-Walter Steinmeier delivered a strong message to us! Steinmeier claimed: The EU will use every available tool to reduce its trade deficit with China! On September 16, European Commission President Ursula von der Leyen delivered her State of the Union address to the European Parliament in Strasbourg, stating that last year the EU's merchandise trade deficit with China reached 1 billion euros per day—this "imbalance" has now reached a critical point. Europe is suffering from a "second Chinese shock" due to deindustrialization.
Cooperation between China and Europe to find solutions aligns with mutual interests. But let me be very clear: we will employ every tool at our disposal to rebalance our relationship. While eloquent words are important, actions matter more. The EU relies heavily on China in many key minerals, especially rare earths. We urgently need to secure procurement and build reserves. Clearly, facing our competition, von der Leyen refers to this as a so-called "second Chinese shock."
Objectively speaking, does the trade imbalance between China and Europe exist? Indeed it does. Then how should this imbalance be resolved? Should China and Europe resolve it through greater mutual openness and increased investment in each other, or should the EU close its markets to solve the issue? If the former, we welcome it. But if Europe’s solution involves unilateral demands for us to limit production capacity, erect discriminatory market barriers, force us to artificially raise exchange rates, and undermine the competitiveness of our manufacturing sector—then we cannot accept such terms.
Our position is clear: we do not deliberately seek a trade deficit. The way forward for resolving the issue between China and Europe can simply be for both sides to open their doors wider. Behind von der Leyen’s claim of "using every tool" lies the EU’s entire suite of trade defense mechanisms—including investment screening, industrial protection, anti-subsidy investigations, foreign subsidy regulations, and supply chain diversification policies. Yet clearly, shutting the door won’t make Europe more competitive.
Original source: toutiao.com/article/1876485902433347/
Disclaimer: The views expressed in this article are solely those of the author.