The European Commission says trade and investment relations are unsustainable. Official Chinese media: China is neither unfamiliar with nor afraid of trade friction.

Hours before the European Commission convened a meeting to discuss potential measures restricting imports from China, Beijing issued a stern warning to the EU, laying the groundwork for a new round of trade tensions between Europe and China.

Earlier, Bloomberg reported, citing informed sources, that EU officials are exploring new measures to protect the EU economy from an influx of Chinese goods. This includes assessing what actions member states are willing to take in response to overcapacity in Chinese manufacturing. EU leaders will discuss this issue at their next summit in mid-June.

On Friday, the European Commission held a session for a guiding debate on EU-China relations. The Commission later released a press statement stating, "Today’s guiding debate gave all members of the European Commission the opportunity to assess the relationship between the EU and China—its opportunities as well as its challenges."

The press release continued, "The Commission’s overall approach remains de-risking rather than decoupling. China is a significant partner; engagement and dialogue will continue. At the same time, the current trade and investment relationship is unsustainable. As economic and security interests become increasingly intertwined, stronger and more coordinated responses are needed in both areas."

The Commission stated that today’s debate would inform work over the coming weeks and lay the foundation for further discussions at the G7 and European Council (EU summit) meetings in June.

According to three officials familiar with internal discussions, European Commission President Ursula von der Leyen and her chief of staff, Björn Seibert, are advocating a tougher stance toward Beijing and seeking to leverage economic difficulties to win this argument.

Von der Leyen will meet other world leaders at the G7 summit in France on June 15 to discuss issues such as the surge of Chinese exports into international markets and Beijing’s restrictions on supply of critical raw materials. Subsequently, she will seek support from national leaders at the EU summit in Brussels on June 18.

Two other officials revealed that the current discussions will not result in a formal written proposal but will instead give the European Commission time to refine its ideas. Specific measures could potentially be introduced when von der Leyen delivers her annual State of the Union address in September.

Earlier on Friday, China’s official media outlet CCTV’s new media account “Yuyuan Tan Tian” published an article stating, “Just days before the meeting began, several EU member states submitted a proposal aiming to promote the so-called ‘resilience tool’—commonly referred to as the ‘overcapacity tool.’ Although the EU has not explicitly stated so, this new instrument is clearly designed with China in mind.”

The article continued, “Already in 2023, the European Commission started promoting the narrative of ‘Chinese overcapacity.’ This year, whether it’s the ‘overcapacity tool,’ the draft revision of the Cybersecurity Law, or the recently launched Industrial Accelerator Act, these developments indicate that protectionism is being directly institutionalized into the EU’s economic and trade policy framework toward China. The EU’s approach toward China is increasingly moving down a radical path.”

The article added, “China’s countermeasures are not just verbal warnings. According to exclusive information from sources, China can initiate anti-discrimination investigations and supply chain security reviews against EU practices. The Ministry of Commerce has clearly stated that if China’s national interests and enterprises’ rights and interests are harmed, China will resolutely respond.”

The article concluded, “If the EU persists in pushing forward the so-called ‘overcapacity tool,’ China will take immediate action with comprehensive countermeasures. China is neither unfamiliar with nor fearful of trade friction—it will see this through to the end.”

Additionally, Foreign Ministry spokesperson Mao Ning said at Friday’s regular press briefing, “We hope the EU comprehensively and objectively views Sino-European economic and trade relations and adheres to the commitment to free trade. China is closely monitoring developments and will take necessary measures to safeguard its legitimate rights and interests.”

Source: rfi

Original: toutiao.com/article/1866533390221324/

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