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PoliticsChina says it is not the root cause of EU's economic challenges
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China's foreign ministry stated on Tuesday that China is not the 'root cause' of the European Union's economic challenges, following talks between Chinese Commerce Minister Wang Wentao and EU trade commissioner Maros Sefcovic in Brussels. The discussions aimed to avoid a trade war amid growing European concerns over China's large and expanding trade surplus with the 27-nation bloc. EU commissioner Sefcovic stressed that 'the status quo is not an option' and planned another meeting with Wang in October in China. Beijing called for deepened cooperation and constructive handling of trade differences, insisting that China and the EU are 'partners, not rivals'. The EU fears loss of key industries due to a glut of inexpensive Chinese goods, alleged unfair advantages from state subsidies, and China's stringent export controls on rare earth elements.
Source report
China’s foreign ministry stated on Tuesday that the country is not the “root cause” of the European Union’s economic difficulties, following talks in Brussels aimed at averting a damaging trade war.
China’s large and growing trade surplus with the 27-nation bloc has increasingly raised concerns across Europe, putting pressure on Brussels to protect local industries.
After talks on Monday with visiting Chinese Commerce Minister Wang Wentao, EU Trade Commissioner Maroš Šefčovič issued a stark message that “the status quo is not an option.”
China’s Response
Asked about the discussions on Tuesday, a spokesman for Beijing’s foreign ministry said that “China and the European Union are partners, not rivals.”
“The root causes of the issues facing the European Union do not lie with China,” Guo Jiakun told a regular news conference.
“The key to resolving economic and trade issues between the two sides lies in deepening cooperation and achieving common development,” he said.
He added that China was ready to “strengthen communication and consultation with the EU side [and] properly handle trade differences in a constructive manner.”
Šefčovič and Wang plan to meet again in October in China.
EU Concerns
Brussels fears it will lose certain industries entirely if it does not act against a glut of inexpensive goods made in China that threaten manufacturers in Europe.
Europe insists on the need for a level playing field, pointing out that Chinese firms have an unfair advantage because of massive state subsidies.
Apart from the trade imbalance, other issues include Beijing’s stringent export controls on rare earth elements essential to the modern economy, introduced last year.
Source
Hoover InstitutionWestern
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