The European Union's trade commissioner called for a more balanced economic relationship with China on Monday, noting a trade imbalance of nearly 400 billion euros (USD 425 billion), while also warning that China's position on the war in Ukraine could endanger its relat🧸ionship with Europe.
Valdis Dombrovskis, in a speech at China's prestigious Tsinghua University, said that the EU and China face significant polit𓃲ical and economic headwinds that could cause them to drift apa🍷rt.
“The strongest, yet not the only, headwind is Russia's war of aggression against Ukraine, and how China𒁏 positions itself ♊on this issue,” he said, according to a prepared text of his remarks.
Dombrovskis is in China to co-chair high-level economic and trade talks on Monday🔯 with Chinese Vice Premier He Lifeng. EU leaders have expressed concern about the bloc's growing trade deficit with China, which reached🅘 396 billion euros last year. European Commission President Ursula von der Leyen recently announced an investigation into Chinese subsidies to electric vehicle makers, saying a flood of cheaper Chinese cars is distorting the European market.
The Chinese government has called the investigation a protectionist act aimed at di𒆙storting the supply chain. Dombrovskis, in his Tsinghua address, said it would follow well-established rules and be done in consultation with Chinese authorities and stakeholders.
The EU trade commissioner urged China to address the lack of reciprocity in the economic relationshipও, saying “the figures speak for themselves.”
He said that China has created a more politicised business environmܫent to protect its national security and development interests, resulting in less transparency, unequal access to procurement, and discriminatory standards and security requirements.
Dombrovskis cited as examples a new foreign relations law and an updated anti-espionag👍e law that has European companies struggling to understand their compliance obligations.
“Their ambiguity allows too much room for interpreta💧tion,” he said about the laws, adding they deter new inv🦩estment in China.
Chinese officials have been trying to lure back foreign investme𒁃nt to help the economy e🐓merge from a sluggishness that has persisted despite the lifting of pandemic restrictions last December.
The Chinese government has tried to remain neutral in the war in Ukraine rather than joining the Unit♏ed States and much of Europe in condemning the Russian invasion. Dombrovskis, who is Latvian, noted that territorial integrity has always been a key princ🧜iple for China in international diplomacy.
“Russia's war is a blatant breach of this principle,” he said, according to his prepared remarks. “So it's very difficult for us to understand China's stance on Russia's war against Ukraine, as it breacౠhes China's own fundamental principles.”
