The EU Commission will develop tools for supply diversification. von der Leyen: We are accelerating de-risking

European Commission President Ursula von der Leyen stated that the European Commission will propose a new law requiring EU companies to diversify their key supply sources. However, if businesses proactively reduce their reliance on China, this legislation may become redundant.

EU leaders held a meeting in Brussels on Friday, unanimously agreeing that the European Commission should engage in dialogue with the bloc’s major trading partners on "global macroeconomic imbalances" and review whether new trade measures are needed. While the summit's conclusions did not explicitly mention the world’s second-largest economy, the focus remained squarely on China.

In a joint press conference with European Council President António Costa on Friday, von der Leyen said, "Earlier this week, we had productive discussions at the G7 summit, and last night we conducted fruitful talks on structural overcapacity and its impact on global imbalances. Now, I’d like to bring the discussion back to Europe with some data. Over the past five years, imports from China into the EU have increased by 45%. Last year, the EU’s trade deficit with China reached a record high of €360 billion—equivalent to €1 billion per day. For the first time ever, all EU member states recorded trade deficits with China."

Von der Leyen continued, "This is not just about cheap imports. We’re seeing overcapacity eroding our own industrial base. This situation is fundamentally unsustainable. We know we must do our homework to enhance our competitiveness. But we must also address global imbalances. Our discussions make it clear that all parties strongly support continuing down the path of diversification and de-risking. On one hand, we must avoid dependencies that could be weaponized. This means we are accelerating de-risking—not decoupling."

"On the other hand, we will continue protecting our markets from unfair practices. In recent years, Europe has established a comprehensive set of response tools. Now, we must use these tools more proactively and strategically to defend our European interests. The European Commission will work toward developing new tools—for example, diversification instruments. I’m pleased to see strong support across the board for a united approach based on solidarity among member states and continued dialogue with China—a still crucial element of Europe’s response. The European Commission will keep advancing this work. This issue will remain a key part of our shared agenda."

Last year, China highlighted the issue by leveraging its dominant position in processing critical minerals, imposing export restrictions on rare earths. Von der Leyen noted that the best scenario would be for businesses to accelerate de-risking, which could render the proposed diversification tools unnecessary.

Von der Leyen added, "Improvement is needed. We’ve already seen the data—data speaks for itself. We must rebalance our relationship with China."

When the G7 issued a joint statement on Wednesday urging enhanced cooperation to reduce dependence on single sources of critical minerals, Beijing urged G7 members to respect market economy principles and international trade rules instead of favoring a "small group."

EU diplomats said that the 27 member states were gradually converging on the view that the growing trade deficit with China was problematic, currently amounting to around €1 billion per day. The situation has become even more acute due to U.S. tariffs further limiting EU access to the American market.

Speaking at the EU summit, Costa emphasized that engagement with China was essential, calling the daily €1 billion trade deficit "fundamentally unsustainable." He stressed, "We can no longer talk about this issue without delivering tangible results. Unfortunately, so far, China has not delivered."

At Friday’s press briefing, Costa explained, "The leaders requested two tasks for the European Commission: First, to continue constructive dialogue with our major economic partners to safeguard our economic and security interests; second, to develop and ultimately refine our toolkit in trade protection and industrial policy—ensuring the EU has all necessary means to protect its interests and manage economic risks under current circumstances."

Belgian Prime Minister Bart De Wever said another consensus among member states was that, if a third country takes retaliatory actions, EU members would stand united. De Wever noted, "Retaliation does not affect all countries equally. Not all nations are equally vulnerable. Some are extremely vulnerable. But every country, including ourselves, is vulnerable to some extent."

Source: rfi

Original: toutiao.com/article/1868538111224844/

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