The European Union’s chief trade negotiator warned China on Monday during his trip to the nation that the bloc will be more forceful in upholding fair competition and defending its interests.
(Bloomberg) — The European Union’s chief trade negotiator warned China on Monday during his trip to the nation that the bloc will be more forceful in upholding fair competition and defending its interests.
“The lack of reciprocity and level playing field from China, coupled with wider geopolitical shifts, has forced the EU to become more assertive,” said Valdis Dombrovskis, an executive vice president at the European Commission, according to prepared remarks to be read during a keynote address at Tsinghua University.
“The EU welcomes competition. It makes our companies stronger and more innovative. However, competition must be fair, and we will be more assertive in tackling unfairness.”
Dombrovskis’ trip coincides with efforts by the EU to strengthen the defensive trade measures at its disposal. The bloc earlier this month launched an anti-subsidy probe into Chinese electric vehicles, which it said was needed to protect jobs and supply chains at home as it claims China is unfairly flooding the market with cheap vehicles.
China’s Commerce Ministry has criticized that investigation as “a naked act of protectionism.” The EV issue is expected to feature on Dombrovskis’ agenda during his China trip.
In addition to a Monday event with Premier He Lifeng, the EU trade chief is also holding bilateral meetings with counterparts, and meet European business representatives both in Shanghai and Beijing.
Dombrovskis is expected to tell Beijing that concrete agreements are needed in an effort to reset the relationship, according to people familiar with the EU’s plans.
In the prepared speech remarks, Dombrovskis argued that the EU’s de-risking strategy is not protectionist. He added that the EU’s plans are country-agnostic.
“Our approach to economic security is proportionate and precise — our action will be purely risk-based,” he said. “De-risking is therefore a strategy to maintain our openness, not undermine it.”
The current talks may also be a stepping stone for a summit between President Xi Jinping and the EU’s Ursula von der Leyen later this year.
“We can choose a path toward mutually beneficial relations. One which is based on open, fair trade and investment, and working hand in hand on the great challenges of our time,” Dombrovskis said, according to his Monday remarks.
“Or, we can choose a path that slowly moves us apart. Where the shared benefits we enjoyed in recent decades weaken, and fade. And as a result, where our people and economies face reduced opportunities.”
–With assistance from James Mayger.
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