The European Union is currently taking a hard line on its relations with Beijing, despite attempts at reconciliation in recent months. Ahead of the bilateral summit to be held in Brussels in July, the EU has cancelled its high-level economic dialogue with China, which was due to take place on 24 and 25 June, according to the Financial Times. At issue is the lack of progress on the trade disputes between the two blocs.
The European Commission has said time and time again that it is available to find a solution with Beijing on Chinese electric vehicles, for example. However, the discussions have still not led to a breakthrough.
Recently, the Commission even proposed that Member States restrict access to certain European public procurement contracts for Chinese companies (see EUROPE 13652/27).
At the G7 summit on Monday 16 June, the President of the European Commission did not mince her words when describing Chinese trade practices: “China has amply demonstrated that it is not prepared to live within the constraints of the rules-based international system.” And to describe the ways in which Beijing is flooding world markets with its products and dominating more and more strategic sectors.
She placed particular emphasis on the case of rare earths, which are highly strategic for the dual transition, and for which China holds a virtual monopoly.
Ursula von der Leyen encouraged the G7 leaders to unite to counter China’s domination of the markets. This requires resilient value chains and, therefore, diversification of the supply of critical raw materials. (Original version in French by Léa Marchal)