A stern message from Ursula von der Leyen to China. The President of the European Commission said that Europe is prepared to take tough measures against the dumping of subsidized Chinese goods on the European market. “It is a kind of shadow of a real trade war,” says Europe correspondent Stefan de Vries.
EU warns Xi Jinping: ‘kind of shadow of a real trade war’
9 min 48 sec
Von der Leyen, Xi Jinping and Emmanuel Macron met yesterday and some harsh words were exchanged. Europe made it clear to China that patience is running out when it comes to unfair competition. “She warned Beijing that Brussels will not hesitate to take action to defend European interests,” says De Vries, who does not call it a warm welcome for the Chinese president. ‘It clearly shows what the relationship is at the moment: very complicated. At the same time, the two economic blocs obviously need each other very much.’
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The European Union can use import duties to regulate imports and exports. In addition, a European investigation has been launched into Chinese subsidies. Companies in Europe can be tackled directly. In extreme cases, it may be decided that production or sales of products must stop. ‘But then China will also start attacking European products. It’s kind of a shadow of a real trade war. It is not quite there yet, but Von der Leyen made it clear yesterday that China really needs to take care of itself,” said De Vries.
Armistice during Olympic Games
The Chinese president said in France that China does not implement dumping measures. Xi continued to keep a low profile, but it is clear that this conflict must be resolved. ‘China of course does not want to risk that the large European market, of 450 million wealthy consumers, is closed to Chinese products. But Europe has a trade deficit with China, so for the time being we are more dependent on China.’
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In France, Xi also said that China has nothing to do with the war in Ukraine. He supported Macron’s call for a ceasefire during the Paris Olympics. Yet Vladimir Putin will be a guest in China in a few weeks. For example, it does not appear that China will change its position towards Russia. “Macron hoped that China will put pressure on Russia to find a solution, but that does not seem to be happening.”
‘Serbia and Hungary can become a bridgehead for China in the European Union’
Xi travels on to Serbia and Hungary
Today Xi will remain in France, but will then travel to Serbia and Hungary. In Belgrade he visits the Chinese embassy. That may seem innocent, but it is not, says De Vries. This week marks 25 years since the deadly American bombing of the Chinese embassy in Belgrade during the war in Yugoslavia. It is a clear signal to NATO to visit that embassy on that exact day.’
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Despite Serbia and Hungary being economic and political dwarfs, Xi still visits them. Both countries are friendly towards Russia and China. In fact, they have strengthened economic ties with the Asian country. ‘China invests in infrastructure, production, energy and technology. It is a remarkable visit to these two small countries, which – especially Hungary – could actually become a bridgehead for China in the European Union.’
China takes good care of Hungary and Serbia. For example, Chinese banks will modernize the railway between Budapest and Serbia. De Vries calls these ways to get a ‘foot in the European door’. Both countries consider the visit extremely important. ‘While Xi was placed on a European bed of nails in France, his visit to Hungary and Serbia will feel more like a warm bath.’
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