EU Commission: the current state of economic relations with China is unsustainable

Brussels – The European Union must respond in a more robust and consistent manner to the current unsustainable state of trade and investment relations with China. This is the gist of the strategic discussion on Brussels’ relations with Beijing, held today (29 May) by the College of European Commissioners. 

“Today’s orientation debate gave the College of Commissioners the opportunity to take stock of EU-China relations, covering both the opportunities they present and the challenges they pose,” reads the summary of the meeting. “
The Commission’s overarching approach remains de-risking, not decoupling” from the Asian giant. This is because “China is a critical partner and dialogue and engagement will continue,” the Commission states. However, ”
At the same time, the current state of the trade and investment relationship is not sustainable. As economic and security interests become ever more intertwined, both dimensions will require a more robust and coherent response,” Brussels makes clear. 

The Commission has also stated that the outcome of today’s debate will inform the work over the coming weeks, ahead of further discussions at the G7 and the European Council on 18 and 19 June. 

At the very start of the week, on 25 May, Italy, Spain, France, the Netherlands, and Lithuania sent a  document to the European Commission—which, under the Treaties, is responsible for the trade policy of the entire Union—focused on strengthening European trade defence. At the heart of their concerns are, above all, the United States and China: the former for the protectionist policy based on trade tariffs put in place by President Donald Trump, the latter for having adopted unfair practices such as dumping (the sale of products at prices below market value), trade triangulation, and the instrumental exploitation of Europe’s strategic dependencies.