Following a warning by the European Commission that it may soon deploy protectionist measures to protect domestic European industry from Chinese competition, China has responded by inviting EU states to avail themselves of its “mega-market.”
Chinese Foreign Ministry spokesman Wang Wenbin was asked during a press briefing on Wednesday if China feared the prospect of a “trade war” with the European Union, given the recent remarks by Ursula von der Leyen, the President of the European Commission.
Wang responded, “China has never deliberately sought a trade surplus. On the contrary, we have consistently advanced high-level opening up and invited all countries to share China’s mega market with a population of over 1.4 billion,” adding, “the current China-EU trade situation is a result [of] the combined influence of the macro-economic environment, international trade conditions and the industrial structures of the two sides.”
Von der Leyen noted in statements to the AFP on Tuesday there was growing concern over a “growing trade imbalance” between the EU and China, however she noted the bloc is possessed of the “tools to protect our market.”
She went on to say although the EU prefers “negotiated solutions” over employing protectionist measures, “European leaders will not tolerate over time an imbalance in the trade relationship.”
Von der Leyen made the comments only days before she, the foreign policy chief of the EU Josep Borrell, and head of the European Council Charles Michel prepare to visit Beijing for the latest round of the EU-China summit.
It will be the first time the leaders will meet in person since 2019, and the meeting is expected to focus on both trade, and the military conflicts which are ongoing in Ukraine and Israel.
For his part, Wang continued to argue that one could not use the raw trade imbalance between the China and the EU to judge the “profit distribution in China-EU trade.” He added that European companies were making “considerable profits” in their trade relationships with Chinese companies.
He also suggested that protectionist measures could invite retaliatory measures being employed by China.
He said, “If the EU sets strict restrictions on the export of high-tech products to China on the one hand, and on the other, hopes to greatly increase export to China, this may not be a reasonable expectation.”
It was reported that last month, Chinese President Xi Jinping, during a call with German Chancellor Olaf Scholz, urged the Chancellor to work to make the trade policies of the EU more open to Chinese investments, while noting that, “China-Europe relations [are] key to the stability of the world order and the Eurasian continent’s prosperity.”
According to a report in Xinhua, Xi said, “[I] hope that Germany will push the European Union to uphold the principles of [the] market and fairness, and to work with China to safeguard fair market competition and fair trade, as well as stable industrial and value chains.”
