XI urges EU to make strategic decisions in trading problems

XI urges EU to make strategic decisions in trading problems

Hong Kong-The Chinese guide Xi Jinping has informed the EU politicians present that Europe should make the "right strategic choice" and strengthen cooperation with China for global "stability", while both sides are faced with a significant summit with deeply rooted problems.

talks between XI and the EU leaders

XI met on Thursday morning in Beijing with the President of the European Council, Antonio Costa, and the President of the European Commission, Ursula von der Leyen, the Chinese State Radiocfunk CCTV reported. The European leaders are in Beijing to take part in a summit that is expected to be conflicting in the face of growing tensions and distrust between the two sides. These tensions result from the drastic imbalance in retail, China's persistent support for Russia in the Ukraine conflict and the recent measures of Beijings to control the supply chain of rare earths.

economic tensions and retail weight

from the Leyen pointed out that the economic relationships of the EU to China, which were loaded last year with a trade deficit of 300 billion euros ($ 350 billion), reached a "turning point". "The deeper our cooperation becomes, the more imbalances are shown," she said. "A balance in our bilateral relationship is crucial ... It is important that China and Europe recognize the respective concerns and offer real solutions."

expectations for the summit

The summit, which was originally set to two days, was reduced to a one -day event to celebrate diplomatic relationships between Beijing and the EU for 50 years. But expectations are low, and instead, it is expected to show an in -depth ditch between the two sides. Just a few months earlier, both sides had signaled hopes of renewal of relationships when they looked towards the global customs war under US President Donald Trump.

xi's message to Europe

On Thursday, XI said in the large hall of the people that the current challenges for Europe are "not from China". There are "no fundamental conflicts of interest or geopolitical contradictions" between Beijing and the EU, according to the China's Ministry of Foreign Affairs. XI pointed out that in view of the accelerating changes in the world and the turbulent international landscape of China and the EU, "once more strategic foresight and responsibility" must show.

growing concerns of the EU

The EU was not afraid to express its concerns in the run -up to the summit. In the past few weeks, the “flood” of favorable Chinese goods have been repeated on the European market, as well as about China's recent pressure on the supply chain of rare earths and the ongoing support for Russia in the Ukraine conflict. Beijing reacted sharply to these concerns and criticized the 27 EU member states, which increased the tariffs for China last year.

reactions and sanctions

After the EU decided last week to exclude Chinese companies from public tenders for medical devices above a certain value, Beijing reacted with its own restrictions on state purchases of devices produced in Europe. On Monday, China's Ministry of Commerce criticized the EU's decision, two Chinese banks and several other companies in the latest sanctions against Russia about its invasion in Ukraine. It was said that this step will have "serious negative effects on economic and trade relationships between China and the EU".

The shadow of Trump's trade war

The trade war under Trump and his negotiations with both major economies also throw a long shadow over the summit. This year there was signs that Beijing hoped that China and Europe could bring together the common dislike of customs threats from the USA. But in separate speeches to the G7 leaders and European MPs made it clear by the Leyen that the deep concerns of Europe are still unsolved.

critical raw materials and global markets

"China not only uses this quasi-monopoly (via rare earth) as a means of pressure, but also uses it as a weapon to undermine competitors in key industries," she said in Canada in June. Beijing has extensive control over the supply chains of these critical minerals, which are important in everything, from electric vehicle batteries and cell phones to fighter jets. This control ensured considerable turbulence in the global manufacturing industry after it imposed export controls for some of these minerals in April as part of its trade dispute with the USA. China had agreed to loosen these controls during a ceasefire with the United States in June.

from the Leyen also called for a uniform G7 reaction to put Beijing under pressure, since it "floods the global markets with subsidized overcapacity that cannot absorb your own market."