China, European Union to 'resume regular exchanges' on economic issues

During a four-day visit to prepare for the EU-China summit scheduled for late 2023, China and the European Union said they are resuming regular exchanges on macroeconomic issues, despite Beijing's "strong dissatisfaction" with a European Union investigation into subsidies for electric cars.

European Commission Executive Vice-President Valdis Dombrovskis and Chinese Vice Premier He Lifeng shake hands after a press conference in Beijing on September 25, 2023. © Florence Lo / Reuters

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We agreed to resume regular exchanges to discuss macroeconomic issues, to relaunch the economic and financial dialogue. And the macroeconomic dialogue will be important in this regard and we look forward to these dialogues in the coming months," EU Trade Commissioner Valdis Dombrovskis told a joint press conference with Chinese Vice Premier He Lifeng after talks in Beijing.

The four-day visit comes at a time when Sino-European relations are not good. EU leaders are concerned about the bloc's growing trade deficit with China, which reached €396 billion last year. The EU commissioner also cited China's recently approved national security laws. "The new foreign relations law and the new version of the anti-espionage law are of great concern to our business community," he said, because "their ambiguity leaves too much room for interpretation."

EU Trade Commissioner Valdis Dombrovskis called for a more balanced economic relationship with China. According to Dombrovskis, China has created a more politicized business environment to protect its national security and development interests, resulting in less transparency, unequal access to government procurement, and discriminatory security standards and requirements.

An investigation opened by the European Commission

Just a few days ago, European Commission President Ursula von der Leyen announced an investigation into Chinese subsidies to electric vehicle manufacturers, saying it is causing concern among European companies who fear fierce competition and much lower Chinese prices. The Chinese government called the investigation a protectionist act aimed at distorting the supply chain. "China once again expresses its great concern and deep dissatisfaction with the EU's plan to launch an anti-subsidy investigation into Chinese electric vehicles," He Lifeng said.

Commissioner Dombrovskis also assured that China remains attractive for investment by European companies. "Both the EU and China have benefited enormously from their openness to the world... That's why I will continue to advocate openness as a winning strategy in the long run. ». But now, European companies are "wondering whether what many saw as a win-win relationship in recent decades could become a lose-lose dynamic in the coming years."

Asked about this at a regular press briefing, Wang Wenbin, spokesman for the Chinese Foreign Ministry, assured that China will continue to "protect the legitimate rights and interests of individuals and organizations." We will continue to provide a market-oriented, legally compliant and international business environment for companies from around the world that legally operate in China. " he added. According to him, China is not a source of risk for these companies, "but rather a firm force to prevent and defuse them".

" READ ALSO China-European Union: from the honeymoon to mistrust under Xi Jinping

War in Ukraine

The European Commissioner also warned China on another issue that penalizes its image: the conflict in Ukraine. The fact that China still refuses to condemn the Russian invasion of Ukraine would penalize it, according to the EU trade commissioner. He warned Beijing against a stance that "harms the country's image, not only vis-à-vis European consumers, but also businesses".

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Territorial integrity has always been a key principle for China in international diplomacy. and "China has always advocated for each country to be free to choose its own development path," he said. "So it is very difficult for us to understand China's position on Russia's war against Ukraine, as it violates China's fundamental principles," he said.

China and Russia see each other as strategic allies, with the two countries frequently touting their "limitless" partnership and economic and military cooperation. The two countries have grown even closer since the start of the Russian invasion of Ukraine in February 2022,

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