French President, Emmanuel Macron and EU Commission Chief, Ursula von der Leyen have urged Chinese President, Xi Jinping to ensure more balanced trade with Europe.
Xi Jinping and Macron used their opening remarks to express a mutual desire for good relations.
Xi said, “the world today has entered a new period of turbulence and change,” adding that “as two important forces in the world, China and Europe should … continuously make new contributions to world peace and development.”
Von der Leyen told reporters in Paris after meeting the Chinese President alongside Macron that she was “convinced that if the competition is fair” from China, then Europe “will have thriving durable economies.”
However, she said that the “imbalances” caused by state support for Chinese industry leading to cut-cost products threatened jobs in Europe, and that was “a matter of great concern.”
She restated EU’s readiness to launch a trade war with China over imports of cheap electric cars, steel and cheap solar and wind technology.
The European Union “cannot absorb massive over-production of Chinese industrial goods flooding its market,” von der Leyen told reporters.
“For trade to be fair, access to each other’s markets also needs to be reciprocal,” she averred.
“We stand ready to make full use of our trade defence instruments if this is necessary. Europe cannot accept market-distorting practices that could lead to de-industrialisation here at home.
“Europe will not waver from making tough decisions needed to protect its economy and security.”
Ursula von der Leyen
“The relationship between Europe and China is hurt by unequal market access and by Chinese state subsidies,” she added.
Macron told Xi that Europe and China needed to resolve structural difficulties, in particular on trade, adding that Europe’s future would partly depend on its capacity to develop a balanced relationship with China.
Together with Macron, they spoke about the geopolitical situation and how both the EU and China had a “shared interest in peace and security” with a strong role to play in relation to the war in Ukraine.
Von der Leyen praised Xi for the “important role” he played in “de-escalating Russia’s irresponsible nuclear threats“ and said the EU counted on China “to use all its influence on Russia” to end the war.
She urged Xi to stand by China’s commitment not to provide any lethal equipment to Russia. She said she encouraged him to exert more effort to curtail dual use goods to Russia that end up on the battlefield in Ukraine.
“Given the existential nature stemming from this threat for both Ukraine and Europe, this does affect the EU-China relations,” she said.
EU Told To Develop Right Perception Of China
According to Chinese state media, Xi told Macron and von der Leyen during their talks that he hoped EU institutions would “develop the right perception of China.”
He agreed that economic and trade frictions should be addressed through dialogue.
Chinese media also reported that Xi also told them that the problem of China’s overcapacity “does not exist either from the perspective of comparative advantage or in light of global demand.”
Nonetheless, after the trilateral meeting, von der Leyen was blunt but insisted China had time to change direction.
She said that they had an “honest and open exchange and discussion where we see eye to eye and on points where we have differences.”
