Following a policy debate, on Friday 29 May (see EUROPE 13876/19), the European Commission committed to toughening its stance in order to protect the EU’s strategic industries from Chinese competition and to rebalance trade relations with Beijing.
“Today’s policy debate enabled the college of Commissioners to take stock of relations between the European Union and China, addressing both the opportunities they offer and the challenges they pose. The Commission’s general approach remains focused on de-risking, not decoupling”, the institution pointed out in a statement.
The college discussed the use of the trade defence instruments already available to the EU, as well as the possibility of developing new instruments, a source told Agence Europe.
As for the Member States, Germany and Spain remain cautious about the stance to adopt towards China. Spain ultimately withdrew its signature from a letter sent earlier in the week, the contents of which called on the European Commission to harden its position and make use of the European trade defence instruments (see EUROPE 13874/26). Madrid, caught off-guard, indicated that the document had not been finalised when it was circulated.
Stressing that Beijing “is an essential partner” and that “engagement and dialogue will continue”, the European Commission acknowledged that “the current state of trade and investment relations is not viable”. Thus, “as economic and security interests become increasingly intertwined, these two dimensions will require a firmer and more coherent response”.
An initial version of the minutes stated that dialogue would continue “as long as the channels of communication remain open”. However, this wording was subsequently removed, with the European Commission arguing that it stemmed from a misinterpretation.
Although no written conclusions are expected at the end of this meeting, European Commission President Ursula von der Leyen could present measures during her State of the Union address in September, according to Politico.
Moreover, the approach adopted today will serve as the basis for the work of the leaders of the G7 countries at a summit in Évian-les-Bains, from 15 to 17 June, as well as for EU leaders at the European Council meeting on 18 and 19 June. (Original version in French by Juliette Verdes)