Tariffs: von der Leyen discusses “a negotiated solution” with Chinese Premier Li Qiang urging to “avoid further escalation”

Brussels – US tariffs hit everyone, and they hit hard, and it is no surprise if, in addition to shaking economies around the world, they also manage to bring closer those targeted closer. After the heated exchange of threats between the administration of US President Donald Trump and the government in Beijing raised the tone of confrontation at the two Pacific leaders, European Commission President Ursula von der Leyen took advantage of the 50th anniversary of diplomatic relations between Europe and China to talk about the trade order with Li Qiang, premier of the People’s Republic.

As communicated by the Commission, she called the prime minister today (April 8) to discuss the state of EU-China relations, covering a range of issues starting with the need to maintain stability and predictability in the global economy. Responding to the widespread disruptions caused by the tariffs Trump imposed, von der Leyen emphasized “the responsibility of Europe and China, as two of world’s largest markets, to support a strong reformed trading system, free, fair and founded on a level playing field.” In this vein, the leader of the European executive called for a negotiated resolution of the current situation, highlighting the need to avoid further escalation, and remarked on China’s critical role in containing possible trade diversion caused by tariffs, particularly in sectors already affected by global overcapacity. Von der Leyen and Li, the Commission notes, discussed the possibility of establishing a mechanism for tracking such a diversion and ensuring an appropriate response to any developments.

While tariffs and the global weight of their markets may unite the EU and China, many issues still need to be resolved to ease their relationship. In this regard, the president, in addition to calling for greater cooperation on the climate agenda and the green industrial transition, addressed the issue of Sino-European trade, “recalling the urgency of structural solutions to rebalance the bilateral trade relationship and ensure better access for European products, services, and companies to the Chinese market.” On Ukraine, another hot topic, von der Leyen recalled that it must be Ukraine to determine the conditions for peace and called on China to “intensify its efforts to contribute significantly to the peace process.”

Donald Trump’s attitude toward China and his rejection of Europe’s “zero for zero” proposal for machinery and industrial goods — which, according to the commander-in-chief, is “not good enough” — have paved the way for European dialogue with the Asian giant, which, tired of tariffs and the stock market crash, now appears from Brussels more like a trading partner than the “hybrid actor that threatens the EU,” as it was defined in the White Paper on Defense. Also, for this reason, July’s Eu-China summit will be an interesting opportunity to find out what shape the relationship between the two global players is taking.