European Union commissioners met on Friday, May 29th for potentially controversial discussions focused on introducing new trade restrictions against Beijing. The meeting comes amid mounting fears that Chinese export practices could create U.S.-style “rust belt” regions within Europe.
Setting the tone for the event, yesterday industry chief Stephane Sejourne told EU ministers in Brussels:
China’s industrial dominance is not accidental. It is the result of decades of state subsidies and non-reciprocal market access.
Commissioners were asked to prepare for the talks by considering examples of Chinese activities in all 27 portfolios, spanning from trade to agriculture, defence, health, and digital initiatives.
The recent influx of goods from China—ranging from electric vehicles and essential machinery components to medical equipment and food products–—has been labelled “China Shock 2.0.” Officials worry this could replicate the economic disruption experienced in the U.S. 25 years ago following China’s entry into the World Trade Organization, despite the People’s Republic’s own recent difficulties.
Chinese foreign ministry spokeswoman Mao Ning said before talks ended on Friday that Beijing was “closely following” the developments and
will take necessary measures to safeguard its legitimate rights and interests.
The debate between European commissioners will influence further talks on trade imbalances at the G7 heads of state meeting in France on June 15-17 and an EU leaders’ summit in Brussels on June 18-19.
