EU Chief Calls For “Fair” Competition In Paris Talks With China’s President Xi

In the bustling city of Paris, EU chief Ursula von der Leyen stands poised to engage in a crucial dialogue with China’s President Xi Jinping during his state visit. With a steadfast determination, von der Leyen emphasizes the pressing need for “fair” competition between the European Union and China, seeking to rectify any distortions that may exist.

Reflecting on her previous encounters with President Xi, von der Leyen firmly asserts that the current imbalances in market access cannot be sustained and must be addressed.

As the head of the European Commission, the EU’s authority on trade matters, she has recently initiated several competition probes targeting China, drawing Beijing’s ire and accusations of EU “protectionism.”

One such investigation revolves around suspected inequitable access to China’s medical devices market, while another focuses on Chinese wind turbine suppliers for the European market.

Moreover, the European Commission has also delved into Chinese subsidies for solar panels, electric vehicles (EVs), and trains.

These actions highlight the EU’s commitment to ensuring fair trade practices while maintaining a delicate balance in its relationship with China.

Von der Leyen reiterates the EU’s stance, emphasizing the need to “derisk” relations with China without severing ties completely—an approach that distinguishes itself from the more stringent measures adopted by the United States.

The goal is to lessen dependence on Chinese suppliers while avoiding drastic penalties or trade embargoes in crucial sectors.

“Our relationship with China is one of the most complex, yet one of the most significant,” affirms von der Leyen. Having engaged in extensive discussions with President Xi, ranging from trade and climate to global affairs and digital issues, she possesses a deep understanding of the multifaceted nature of EU-China relations.

Drawing attention to the issue of Chinese overcapacity, the EU chief underscores the adverse consequences it poses. The influx of Chinese goods into the European Union at disproportionately low prices hampers the competitiveness of EU enterprises.

Chinese manufacturing, fueled by substantial subsidies, has led to an oversupply of goods such as EVs and steel, ultimately distorting the market and risking de-industrialization in Europe.

To address this concern, von der Leyen pledges to encourage the Chinese government to swiftly tackle these overcapacities.

Furthermore, she emphasizes the EU’s commitment to collaborating with other wealthy and emerging economies affected by China’s market distortions. Together, they can navigate the challenges and strive for a fair and balanced global trading system.

As the Paris meeting unfolds, the world watches with anticipation, recognizing the significance of these discussions in shaping the future of EU-China relations.

Only time will reveal the outcomes of these deliberations and the path that lies ahead for fair competition and sustainable trade between these two influential entities.

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