EU Warns China: ‘We Will Use All Tools’ to Rebalance Trade
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Strasbourg: European Commission President Ursula von der Leyen cautioned China that the European Union will deploy all available tools to restructure its trade ties with Beijing, calling the bloc’s trade deficit unmanageable.
In her State of the Union address to the European Parliament, von der Leyen stated that the EU’s trade deficit in goods with China amounted to approximately €1 billion ($ 1.15 billion) per day last year.
She stated that the imbalance had led to what she termed a ‘second China shock,’ as European industries encountered growing pressure from Chinese competition and imports.
Von der Leyen also pointed out Europe’s reliance on China for essential raw materials, especially rare earths. She stated that the EU would aim to build reserves and create a new European corporation dedicated to securing critical raw materials.
Trade discussions between the EU and China are ongoing, as EU Trade Commissioner Maros Sefcovic aims to achieve concrete progress by October.
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