China fought back against Ursula von der Leyen’s intervention at the G7 Summit. Meanwhile, she encouraged Beijing by perpetuating what she called “patterns of domination, dependence and intimidation.”
“We are strongly dissatisfied and firmly opposed to unfounded, prejudiced remarks that reflect double standards,” Guo Zi-Kun, a spokesman for China’s Foreign Ministry, said at a press conference Wednesday.
The exchange of accusations overturns perceived momentum in EU-China relations, sparked by President Donald Trump’s sweeping tariffs that targeted allies and enemies and spread panic across the business world.
The export-oriented bloc has been working on the phone to ensure an alternative market that will help mitigate the impact of Trump’s disruptive policies. With 1.4 billion citizens, China is the most obvious option to bridge the gap.
Sensing the opening, Beijing did some overtures to curry in Brussels, including lifting Controversial sanctions Members of the European Parliament have been re-engaged in consultations to resolve the dispute over Chinese-made electric vehicles.
Last month, Chinese President Xi Jinping was welcomed 50th anniversary Relations between the EU and China as an opportunity to “open a brighter future” for diplomacy.
“Both sides should support multilateralism, and protect fairness and justice (and) oppose unilateralism and bullying,” Xi said, clearly referring to Trump’s obligations.
Von Der Leyen replied: “We are committed to deepening our partnership with China. A balanced relationship built on equity and reciprocity is our common interest.”
However, during Canada’s G7 summit, the European Commission president was Surprisingly, hawkish tone It condemns the “distortion” caused by China’s state-driven economy and its industry’s overcapacity and powerful use of subsidies.
She also declared that China’s accession to the World Trade Organization (WTO) was the cause of the “biggest collective problem” in the world trade system in 2001.
Beijing’s entry into the WTO is controversial as it opened an international market for mass production of low-cost exports. Admission is linked to the so-called “Chinese shock” and the decline in manufacturing employment in both Europe and the US.
In the G7, von der Reyen warned that an ongoing “new China shock” was ongoing.
“China is still defined as a developing country. This cannot be done. It largely shows that China does not want to live within the constraints of the international system based on rules,” von der Leyen said.
“Others have opened markets, but China has focused on large subsidies aimed at protecting intellectual property, controlling global manufacturing and supply chains,” she continued. “This is not market competition, it’s a distortion of intention.”
In response, China’s foreign ministry tried to turn the table, accusing the EU of luxurying its companies with “large subsidies” and pursuing a “European preference” policy. The EU has also criticized Beijing Baicina clause.
“The so-called overpower stories are nothing more than an excuse for the relevant countries to use to go to protectionists simply because they fear their competitiveness and market share. The problem is not “overpower capacity,” but “overwhelming anxiety,” Guo said.
“The EU is working to increase its growth and competitiveness. It needs to abandon the double standard, be more open and accept cooperation.”
Rare Earth Controversy
At the heart of Von Der Leyen’s intervention was Beijing’s recent decision to limit the sale of seven rare earth materials, which the committee described as “anxious.”
China holds a quasi-unit position over rare earths, the 17 metal elements essential to building cutting-edge technology. The country has ordered about 60% of the world’s supply and 90% of its processing and refinement capacity.
“China is using weapons not only to use this quasi-monopoly as a negotiation chip, but also to undermine competitors in key industries,” she said.
Recent restrictions have been eased, but von del Reyen warned that “threat remains” and called on the G7 to close the rank of China’s “pressure”;
Her remarks were made in the presence of Trump. Trump’s administration depends on thwarting the rise of China as a tech superpower. Officials in Brussels hope that China will become a common point of interest to strengthen its vulnerable Atlantic alliance.
“Donald is right – there’s a serious problem,” she said.
China’s Foreign Ministry dismissed these objections, claiming that the country would act in a “responsible” way and “”speed up review and approval of export licenses.
“The so-called “market distortion” and “overpower” accusations are absolutely wrong. The G7 use them as excuses for trade protectionist practices, essentially suppressing and restraining Chinese industrial progress, politicizing and arming economic and trade issues,” the spokesperson said.
Despite heated rhetoric, the ministry has reached out to deepen ties with the EU and signalling the country still hopes for a diplomatic reset.
“China is ready to increase communication and coordination with the EU, and will handle trade differences appropriately and achieve victory and shared prosperity,” Guo said.
“That being said, we will firmly oppose attempts to undermine China’s development rights, or even assert our own interests at Chinese costs.”
The Eu-China Summit is scheduled to be held in late July.
