EU Commission President Ursula von der Leyen speaks during a press conference.
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European Commission chief Ursula von der Leyen said on Tuesday that Europe must speak forcefully with China about its alleged unfair trade practices, repeating calls from US Treasury Secretary Janet Yellen the previous day.
Ahead of Chancellor Olaf Scholz’s trip to Beijing later this week, von der Leyen said European companies should have the same market access in China as Chinese firms in Europe, according to comments cited by Reuters.
She also called on the German leader to take a tough stance against Chinese authorities on overcapacity and unfair competition practices.
This comes after Yellen told CNBC on Monday that she would not rule out U.S. action, including potential tariffs, against China amid concerns that Beijing is intentionally flooding international markets with cheap green energy products.
“I wouldn’t rule anything out at this point. We have to leave everything on the table. We want to work with the Chinese to see if we can find a solution,” she said in an interview with CNBC’s Sara Eisen.
Concerns about Chinese overcapacity
Chinese overcapacity has become a key diplomatic point of tension as the United States and its allies deny that overproduction and subsidized goods from China are undermining domestic businesses.
China, for its part, denies the claims. China’s Commerce Minister Wang Wentao said on Monday that the rise of China’s green technology industry – which includes electric vehicles (EV), solar panels and lithium-ion batteries – has resulted in “constant innovation,” according to his ministry.
She also denies that the US – through initiatives such as the Inflation Reduction Act – subsidizes its own manufacturing industry.
Treasury Secretary Yellen said Monday that other countries could explore the possibility of imposing trade restrictions on China if an agreement cannot be reached.
The European Union has so far resisted implementing such measures given its close trading ties with the world’s second-largest economy.
Berlin, in particular, has been hesitant to impose tariffs on Beijing’s electric vehicle industry for fear of retaliation against its own large automobile industry – a key pipeline for German exports to China.
According to Reuters, Chancellor Scholz said on Monday before his three-day trip to China that he was skeptical about the need for such tariffs, a spokesman said. This is despite a wider ongoing EU investigation into the “dumping” of subsidized Chinese electric vehicles into Europe.
Scholz is expected to arrive in China on Sunday for a visit that will include a meeting with Chinese President Xi Jinping and Prime Minister Li Qiang. According to media reports, he will be supported by three ministers and several business executives.
The visit is Scholz’s second since taking office as Chancellor and his first since November 2022.
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2024-04-09 11:32:47
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