"Trade Friction at EU-China Relations Crossroads... Deficit Must Be Resolved First"

As the first face-to-face summit between the European Union (EU) and Chinese leaders is expected to take place next month, the EU's chief trade official reiterated the need to resolve the trade deficit while mentioning the rebuilding of trust with China.

According to Caixin on the 10th, Valdis Dombrovskis, the EU Executive Vice President, said in a video address at the 'Caixin Summit' held in Beijing the previous day, "The current relationship between the EU and China is facing several tests."

He stated, "Europe and China are currently at a crossroads," adding, "Both sides can choose the path of reciprocity to jointly respond to the great challenges of our time, or they can choose a path of gradual estrangement."

He continued, "This path (of estrangement) would fade or erase the benefits that China and Europe have enjoyed together over the past decades. Therefore, let us make the right choice."

He emphasized, "In a time when the global geopolitical landscape is increasingly tense, mutual communication is most important," adding, "However, dialogue and communication alone are not enough; rebuilding trust and achieving tangible results are also necessary."

[Image source=AP Yonhap News]

On that day, he focused on the trade deficit issue that the EU has been demanding China to improve. Vice President Dombrovskis said, "For example, in the economic and trade sector, the vast trade volume between the EU and China has made this bilateral relationship the most important bilateral trade relationship in the world, but from the EU's perspective, this relationship remains unbalanced."

He further explained, "Balancing the EU-China economic and trade relationship and reducing the EU's trade deficit with China are necessary for the future development of the bilateral relationship."

During his visit to China last September, Vice President Dombrovskis met with high-ranking Chinese officials including Vice Premier He Lifeng and conveyed concerns regarding the economic and trade sector, saying, "We have now entered a stage where results must be delivered."

He introduced that officials from both sides are currently working on drafting provisions related to the establishment of the 'EU-China Financial Working Group,' and that at the end of last month, they exchanged technical-level opinions on their respective export control systems for the first time, evaluating these changes as "positive" progress.

Vice President Dombrovskis said about the exchanges over the past year, "High-level dialogues have taken a very good first step, but there is still much to be accomplished going forward."

He added, "Ultimately, how solid the EU-China relationship is will be measured by results," and "The EU-China summit scheduled for the end of this year will also be an opportunity to review related achievements once again."

Earlier, Bloomberg reported that the EU and China are scheduled to hold a summit in China on the 7th and 8th of next month. Although EU leaders such as Ursula von der Leyen, President of the European Commission, and Charles Michel, President of the European Council, have each visited China and met with President Xi Jinping, this will be the first formal summit attended by both leaders since the current EU Commission took office four years ago.

At the summit, the EU side is expected to emphasize de-risking policies and demand China improve its "unfair market practices." China is anticipated to raise issues such as the EU's recently launched anti-subsidy investigation into Chinese electric vehicles.

This content was produced with the assistance of AI translation services.