STRASBOURG, France: The EU will seek to rebalance economic ties with China, demanding it eases market access for European firms and loosen export controls on rare earths at a summit this month, the bloc’s chief said on Tuesday (Jul 8).
European Commission president Ursula von der Leyen said overcapacity concerns and China’s support for Russia’s war effort in Ukraine will also be on the table at the talks with Chinese leader Xi Jinping.
Addressing the European Parliament in Strasbourg, von der Leyen said Beijing was running the largest trade surplus “in the history of mankind” exporting vast amounts to the EU while making it harder for European companies to do business in China.
“If our partnership is to move forward, we need a genuine rebalancing, fewer market distortions, less overcapacity exported from China, and fair, reciprocal access for European business,” she told lawmakers.
Beijing has sought to improve relations with the European Union as a counterweight to superpower rival the United States, but deep frictions remain over their economic relationship.
The trade deficit between China and the EU was a yawning US$357 billion in 2024.
Brussels is worried that a manufacturing glut propelled by massive state subsidies could add to it, and result in a flood of cheap Chinese goods undercutting European firms.
“China cannot rely on exports to solve its domestic economic challenges. Overcapacity must be addressed at its source, it cannot simply be offloaded onto global markets,” von der Leyen said.
