Post by account_disabled on Feb 20, 2024 4:17:50 GMT -5
European Union trade chief Valdis Dombrovskis warned of “new areas of concern” in the bloc's relationship with China, as part of an inaugural visit aimed at confronting “unbalanced” deals between the two regions. In an interview with the Financial Times in Shanghai, the EU vice president cited the “implications of the anti-espionage law” in China and “data flows” as concerns, as well as market access for foreign companies on the mainland. “We want to maintain trade relationship with China is important, it is our second largest trading partner,” Dombrovskis said. "But we need to address certain aspects of this relationship." His four-day visit comes just a week after Brussels launched an investigation into Chinese subsidies for electric vehicles, as tensions rise over a record 396 billion euro bilateral trade deficit. Dombrovskis, who will hold talks with senior officials in Beijing including Vice Premier He Lifeng, said his intention was to have "specific sector-by-sector discussions" on the deficit.
His comments follow complaints from foreign companies about the operating environment on the continent, where a tougher focus on national security includes restrictions on data flows and a broadly Job Function Email Database worded anti-espionage law. The European Chamber of Commerce in China this week cited a “more politicized business environment” and “ambiguity in new or updated laws,” which it said had affected trust. Foreign companies are also under pressure to “de-risk” their exposures to the mainland amid deteriorating US-China relations and increased scrutiny of supply chains in Washington. In a separate speech at the Bund summit in Shanghai on Saturday morning, Dombrovskis said the EU “does not want to decouple” from China, but reiterated its risk-reduction approach.
He also emphasized a perceived imbalance in trade, saying the bloc "needs to protect itself in situations where its openness is abused" and that it was "necessary" to expand access to China's market for foreign companies. Jorge Toledo, EU ambassador to China, stated this week in Beijing that the deficit was “the highest in the history of humanity,” while the European Chamber of Commerce unveiled more than 1,000 recommendations for the Chinese government to resolve the challenges. that their companies face. Rising geopolitical tensions and scrutiny of trade ties have come at a difficult time for the Chinese economy, which has struggled to fully recover after three years of zero Covid restrictions ended at the start of the year. "China's economic model continues to focus heavily on investment and export-oriented investment, while domestic demand is lagging behind," Dombrovskis told the Financial Times, saying it was one of the "factors" behind of the trade deficit.
His comments follow complaints from foreign companies about the operating environment on the continent, where a tougher focus on national security includes restrictions on data flows and a broadly Job Function Email Database worded anti-espionage law. The European Chamber of Commerce in China this week cited a “more politicized business environment” and “ambiguity in new or updated laws,” which it said had affected trust. Foreign companies are also under pressure to “de-risk” their exposures to the mainland amid deteriorating US-China relations and increased scrutiny of supply chains in Washington. In a separate speech at the Bund summit in Shanghai on Saturday morning, Dombrovskis said the EU “does not want to decouple” from China, but reiterated its risk-reduction approach.
He also emphasized a perceived imbalance in trade, saying the bloc "needs to protect itself in situations where its openness is abused" and that it was "necessary" to expand access to China's market for foreign companies. Jorge Toledo, EU ambassador to China, stated this week in Beijing that the deficit was “the highest in the history of humanity,” while the European Chamber of Commerce unveiled more than 1,000 recommendations for the Chinese government to resolve the challenges. that their companies face. Rising geopolitical tensions and scrutiny of trade ties have come at a difficult time for the Chinese economy, which has struggled to fully recover after three years of zero Covid restrictions ended at the start of the year. "China's economic model continues to focus heavily on investment and export-oriented investment, while domestic demand is lagging behind," Dombrovskis told the Financial Times, saying it was one of the "factors" behind of the trade deficit.