EU raises concerns related to manufacturing overcapacity in China

Chinese Premier Li Qiang, President of the European Council Charles Michel and President of the European Commission Ursula von der Leyen yesterday jointly chaired the 24th China-EU Summit in Beijing.

The EU stressed to China the importance of achieving a more balanced economic relationship with a level playing field and reciprocity.

It underlined the need for progress in addressing the core EU interests and longstanding demands, which include transparency in the business environment, predictable supply chains, trade distortions like industrial subsidies, and sector-specific trade barriers.

The EU and China are major economic partners with €2.3 billion in goods trade per day. However, with an EU trade deficit of almost €400 billion, this relationship is critically and structurally imbalanced. But the EU does not intend to decouple or to turn inwards, the bloc said in an official release.

Li said both sides should stay committed to dialogue rather than confrontation, cooperation rather than decoupling, and peace rather than conflict, to navigate the direction of China-EU relations.

China is ready to work with the EU to uphold the correct positioning of the comprehensive strategic partnership, seek common ground while shelving differences, strengthen mutually beneficial cooperation and multilateral coordination, make China-EU relations more stable, constructive and mutually beneficial, and make more contributions to the prosperity, stability and development of the Eurasian continent and the world at large, he said.

"We will further expand two-way trade and investment, continue to upgrade trade and investment liberalisation and facilitation, deepen green partnership, actively establish digital partnership, and enhance people-to-people exchanges," Li said.

The two sides agreed to continue to ensure the success of the institutional dialogues in all fields and levels, stay committed to openness and mutual benefits, oppose decoupling, provide a fair and non-discriminatory business environment for each other's companies, and appropriately resolve differences through dialogue and consultation.

The two sides will deepen cooperation on the economy and trade, green development, geographical indications, and intellectual property rights, use the dialogue mechanisms on export control well, explore establishing an early warning mechanism for key raw materials, and build a stable supply chain partnership.

They will also strengthen cooperation on carbon emissions trading, adhere to and practice multilateralism, strengthen coordination within the United Nations and other multilateral frameworks, push for necessary reform of the World Trade Organization, and work together to address global challenges.

ALCHEMPro News Desk (DS)