“Market-distorting practices”
Von der Leyen threatens China with defensive measures
May 6, 2024, 7:06 p.m
Subsidized Chinese products are flooding the European market in various areas. EU Commission President von der Leyen calls on Chinese President Xi Jinping to take action against overproduction during a visit to Paris. Otherwise, defensive measures may be taken.
EU Commission President Ursula von der Leyen has threatened China with defensive measures because of trade distortions and called for more decisive action with regard to Russia’s war in Ukraine. “We will defend our companies, we will defend our economy, we will never hesitate to do that if that is necessary,” said von der Leyen after a three-way meeting with China’s head of state and party leader Xi Jinping and French President Emmanuel Macron in Paris . “A China that plays fair is good for all of us. At the same time, Europe will not hesitate to make tough decisions to protect its economy and security.”
Europe cannot accept “market-distorting practices that could lead to deindustrialization here at home,” said the EU Commission chief. Subsidized Chinese products such as electric cars and steel flooded the European market, while China massively supported its manufacturing industry and domestic demand was sluggish. “The world cannot absorb China’s overproduction,” said von der Leyen. That’s why she asked Xi to address structural overproduction. The EU Commission had already announced last year that it would examine possible punitive tariffs on electric cars from China.
Referring to Russia’s war of aggression in Ukraine, von der Leyen said: “More efforts must be made to curb the supply of dual-use goods to Russia that find their way onto the battlefield.” Dual-use goods are goods that can be used for both civil and military purposes. There are repeated accusations against Chinese companies of supplying such goods to Russia. The USA, for example, has already sanctioned Chinese companies. Von der Leyen also said: “We count on China to use all its influence on Russia to end Russia’s war of aggression against Ukraine.” Xi played an important role in de-escalating Russia’s nuclear threats. She is confident that he will continue to do so.
Protests against Xi’s visit
The Elysée Palace also hopes to encourage China, one of Russia’s most important partners, to use its leverage over Moscow to help resolve the conflict. At the beginning of the talks, Xi himself spoke of turbulent changes in the world. China and Europe should therefore deepen their partnership and strengthen mutual trust. Xi further urged that China and the EU should promote stable and healthy development of their relations to contribute to world peace and development. In a guest article in the French newspaper “Le Figaro”, he wrote with regard to the war in Ukraine that they wanted to work together with France and the international community to find ways to solve the crisis.
Macron and von der Leyen emphasized how important cooperation with China is to them, especially to solve global issues. “The future of our continent will depend on our ability to continue to develop balanced relations with China, which is our will,” Macron said. Von der Leyen said: “Given China’s global weight, our commitment is crucial to guarantee mutual respect, avoid misunderstandings, and find solutions to global challenges.”
There were several protests in Paris on the sidelines of Xi’s visit. Members of Reporters Without Borders criticized the detention of journalists in China in front of the Arc de Triomphe. A number of people had already called for a “free Tibet” on Sunday. The international legal status of the autonomous Chinese region in the Himalayan highlands is controversial. China’s leadership is suppressing the independence efforts of around five to seven million Tibetans.