Image reproduced from 中國台灣網

During a speech in the European Parliament in Strasbourg, European Commission President Ursula von der Leyen pointed out that Beijing currently holds the largest trade surplus in human history, with a flood of goods exported to Europe, while European firms face increasing difficulties operating in China. "If we are to advance our partnership, we need real rebalancing, reducing market distortions, decreasing the surplus production capacity from China, and ensuring fair and equal access for European companies," she emphasized. The trade surplus from China to the EU is projected to reach a staggering $357 billion in 2024.

Brussels is concerned that the large-scale subsidies from the Chinese government may exacerbate overcapacity in manufacturing, leading to increased trade imbalances and a surge of cheap Chinese goods flooding into Europe, impacting European enterprises significantly. von der Leyen stated, "China cannot rely on exports to solve its domestic economic challenges. Overcapacity must be resolved at the source and cannot simply be transferred to the global market."

Following Trump's threat to impose tariffs on all countries, analysts had once believed that EU-China relations might be improving. However, tensions have continued to mount in recent months. Just a few days ago, the Chinese government announced restrictions on the import of EU-made medical devices in retaliation for similar restrictions imposed by the EU on Chinese medical devices. Last week, China also announced anti-dumping duties on EU-brandy, and disputes over electric vehicles and solar panels remain unresolved.

The EU and China are set to hold a summit in Beijing later this month to commemorate the 50th anniversary of their diplomatic relations. However, trade frictions and significant disagreements regarding the issue of the Ukraine war have cast a shadow over this summit. According to Bloomberg, amidst this backdrop, China intends to shorten the originally planned two-day summit to just one day. von der Leyen is set to travel to Beijing with the President of the European Council, Antonio Costa, to attend the summit. In her speech on July 8, von der Leyen emphasized that she and Costa would seek to encourage China to relax its export controls on rare earth materials while also committing to developing alternatives.

According to the International Energy Agency, China accounts for two-thirds of global rare earth mining, with 92% of refined rare earth products coming from China.

China's subtle role in the Ukraine war is also exacerbating tensions between the EU and China. In her speech, von der Leyen mentioned that China's continued support for Russia is making Europe more unstable and insecure: "China is effectively assisting Russia's war economy, and we cannot accept this. How China continues its interactions with Putin's war will become a decisive factor for future EU-China relations."

The EU Commission President believes that if China truly wants to support a rules-based international order, it should unequivocally condemn Russia's blatant violations of the sovereignty and territorial integrity of other nations. However, von der Leyen also emphasized that the EU still needs to enhance cooperation with China. "Decoupling from China would be inefficient and ineffective."