German Media: G7 and EU Plan to Reduce Dependence on China; China: No Intention to Pursue Trade Surplus

Recently, the Group of Seven (G7) and the European Union have been considering ways to reduce their trade reliance on China. On June 22, China stated that it does not deliberately pursue a trade surplus, and that the main obstacles to increasing imports lie not with China itself, but with countries that excessively apply export controls.

On Monday, June 22, the China International Supply Chain Promotion Expo, nicknamed "Chain Expo" in Beijing, officially opened. In his opening speech, China emphasized that it has never intentionally pursued a trade surplus, but rather proactively expands imports to promote balanced trade development.

China stated: "The biggest obstacle to China's increased imports is not within China itself, but lies in certain countries that broadly define security concerns and abuse export controls." "Given the complex and ever-changing global situation, the risk of fragmentation in industrial and supply chains is rising. Countries should strengthen mutual trust and work to prevent the politicization, weaponization, and over-safeguarding of economic and trade issues, while minimizing non-economic disruptions."

China also cited the obstruction of shipping through the Strait of Hormuz as an example, emphasizing its active role in maintaining stability in the international energy market.

NVIDIA CEO Jensen Huang also participated in the "Chain Expo" via video message on June 22, stating, "China is one of the world’s major centers for technology and industry."

G7 and EU Consider Countermeasures Amid EU-China Trade Imbalance

According to The Wall Street Journal, China's trade surplus has continued to grow over recent months, prompting the Group of Seven (G7) and the European Union to consider countermeasures.

During last week’s G7 summit, a statement was issued highlighting key minerals supply chains. It noted that the G7 aims to significantly reduce dependence on single suppliers outside G7 member states and partner countries for rare earth elements and permanent magnets. By 2030, the goal is to lower this dependency to below 60%, continuing to reduce it further, ideally approaching 50% in the long term.

The EU's trade deficit with China continues to widen, averaging over €1 billion per day. Amid this imbalance, the EU is exploring expanding its trade defense instruments, including considering the implementation of sector-specific tariffs akin to a European version of Section 301.

Earlier, Maros Sefcovic, EU Commissioner for Trade and Economic Security, invited China’s Minister of Commerce to Brussels for consultations on economic and trade issues. According to Reuters reporting on June 22, the Chinese minister will visit Brussels on June 29, at the invitation.

Besides the G7 and the EU, the U.S. government this month added Chinese firms such as Alibaba to the "1260H" list of Chinese military enterprises, restricting official interactions with companies on the list. In response, China’s Ministry of Commerce and Ministry of Finance this week imposed countermeasures—adding ten U.S. companies, including rare earth manufacturers, to an export control list, and banning official procurement of products from 46 U.S. firms, including Lockheed Martin and Raytheon.

Source: DW

Original article: toutiao.com/article/1868830086036489/

Disclaimer: This article represents the views of the author alone.