China and EU Set to Strengthen Trade Ties Amid Fair Trade Concerns
China and the European Union (EU) are preparing for a series of high-level dialogues aimed at reinforcing their economic relationship ahead of the upcoming China-EU Summit later this year. The first of these events, the China-EU High-Level Economic and Trade Dialogue (HED), is scheduled for September 25. The meeting will be co-chaired by Chinese Vice Premier He Lifeng and Executive Vice President of the European Commission Valdis Dombrovskis.
Despite expressing concerns about what he described as an “unbalanced economic relationship,” Dombrovskis emphasized that China and the EU remain “key trading partners.” He reassured his Chinese counterparts that Brussels has no intention of “decoupling” from Beijing, highlighting the importance of open dialogue and cooperation.
At the recent G20 Summit in India, European Council President Charles Michel met with Chinese Premier Li Qiang. They exchanged views on maintaining “stable and constructive relations” and agreed to continue dialogues, including the HED, to “foster mutual understanding” and address global challenges. European Commission President Ursula von der Leyen also acknowledged China’s “key role” in tackling issues such as climate change and international conflicts.
Last year’s economic and trade dialogue between China and the EU focused on global economic challenges and reforming the World Trade Organization (WTO). Both sides concurred that ensuring a stable global economy is a “shared responsibility.” The EU expressed a strong interest in enhancing cooperation with China in financial regulatory matters, including green finance.
However, recent actions by the EU have raised concerns in Beijing. The EU has increased anti-dumping duties on Chinese fiber cables to as much as 88 percent and renewed similar duties on imports of tungsten carbide from China for another five years. Additionally, the European Commission has launched an investigation into Chinese electric vehicle (EV) subsidies, a move that China has criticized as protectionist.
Beijing warns that such measures could provoke retaliation and undermine the EU’s economic and trade interests. The investigation into EV subsidies, driven by fears of China’s lead in producing affordable and consumer-friendly electric cars, raises questions about the EU’s commitment to free trade and openness. China urges Brussels to uphold fair trade principles to ensure the success of the upcoming dialogues and to strengthen bilateral relations.
The upcoming HED offers an opportunity for both sides to address these challenges and achieve tangible outcomes in areas such as financial services and green finance. By working together, China and the EU can reinforce their economic ties and contribute to global stability and prosperity.
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Brussels' commitment to fair trade vital for China-EU relations
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