During the 25th summit of the European Union and China, the European Commission put forward three main economic demands to Beijing regarding trade and investment, market access and export controls, without informing about any concessions that the European Union is ready to offer in return.
European Commission President Ursula von der Lieyen said at a press conference held without the participation of the Chinese that the EU’s trade deficit with China has doubled over the past 10 years and is now in excess of €300 billion.
The head of the European Commission therefore called on China to take measures to reduce this imbalance, in particular by reducing investment in production and more actively supporting domestic consumption in China.
Von der Layen expressed concern that «the huge industrial overproduction in China does not correspond to the level of domestic consumption», which in her opinion leads to export growth.
She also warned that as «other markets are closed to PRC products» by pointing to US-imposed duties, the pressure of Chinese exports on the European market will increase, which «will force Brussels to take retaliatory measures».
In addition, the EU demands that China grant European businesses greater access to the Chinese market, particularly participation in public procurement.
The third requirement of the European Union relates to the reduction of China’s export controls on rare earth elements and their industrial components, including permanent magnets.
Von der Layen stressed that the EU needs a stable supply of these materials, and called on China to accelerate the process of approving licenses for their export to Europe.
Let us recall that earlier, China severely reprimanded the EU for new sanctions against Russia. Meanwhile, the US has changed its policy towards China, Russia, Ukraine, and Iran.