While EU is concentrating on lowering its economic dependence on China, it does not plan to sever ties with the country
The Executive Vice-President of the European Commission – Valdis Dombrovskis, has said that the European Union (E.U.) does not intend to cut ties with China even as the bloc is focussing on reducing economic dependencies on China.
He also said that China could do a lot to help reduce the perception of risk. His remarks came during his speech at the Tsinghua University in Beijing. The E.U. has long complained about a lack of level playing field in China and the politicisation of the business environment. The relations between the E.U. and China further strained after China didn’t criticise Russia for invading Ukraine.
China also unveiled new laws this year, including a foreign relations law warning against “acts” detrimental to China’s national interests and an anti-espionage law barring the transfer of information linked to national security that it does not specify, raising compliance risks for foreign companies.
In a series of tweets, Valdis Dombrovskis tweeted,
EU-#China engagement remains essential: we are key trading partners, with highly integrated economies.
— Valdis Dombrovskis (@VDombrovskis) September 25, 2023
But we stand at a crossroads.
We can choose a win-win path of open, fair trade/ investment + tackling global challenges.
Or, we face a path that slowly moves us apart. pic.twitter.com/h9BKBnrCzU
He further tweeted,
In a world of rising geopolitical tensions, candid dialogue is vital to re-energise EU-#China engagement.
— Valdis Dombrovskis (@VDombrovskis) September 25, 2023
During my visit to 🇨🇳I've stressed that:
China’s stance on Russia’s war in Ukraine is very problematic, negatively impacting both 🇪🇺 political & business attitudes. https://t.co/6m7kF1dgY8 pic.twitter.com/OVNcguzYfq
He highlighted that cooperation between Europe and China remains essential. But in a world characterised by rising geopolitical tensions, we need to work harder to continue building positive cooperation. He said the E.U. has real concerns relating to market access and other challenges the European companies face in China and the E.U. would like to see greater transparency, predictability and reciprocity. He made it clear that E.U. aims to diversify and not decouple. The E.U. wishes to maintain an open approach, delivering win-win results while addressing risks and over-dependencies.
Applauding China’s progress, he said that China’s economic rise in recent decades is not just impressive but is unprecedented.
Going ahead, Dombrovskis is expected to share his concerns with Chinese Vice Premier – He Lifeng at a high-level economic and trade dialogue in Beijing. He is also expected to reiterate E.U.’s displeasure over trade imbalances. The E.U.’s trade deficit with China widened to U.S. $ 276.6 billion in 2022 from U.S. $ 208.4 billion a year earlier. Besides, China will ask Dombrovskis to explain the E.U.’s de-risking strategy.
