European Commission President Ursula von der Leyen has warned Chinese President Xi Jinping that the European Union will not tolerate Beijing’s “market distorting practices” ahead of a three-way meeting in Paris on Monday.
Xi was scheduled to meet von der Leyen and French President Emmanuel Macron at the Élysée Palace on Monday morning. He arrived in the French capital on Sunday on a six-day European trip which will also include stops in Serbia and Hungary.
Chinese state subsidies for its electric vehicle and steel industries pose a serious threat to European industries and could even lead to “de-industrialization in Europe,” von der Leyen said, in comments made public.
“China is currently manufacturing, with massive subsidies, more than it is selling due to its own weak domestic demand,” von der Leyen said. “This is leading to an oversupply of Chinese subsidized goods, such as EVs [electric vehicles] and steel, that is leading to unfair trade,” she added.
Von der Leyen said “current imbalances in market access are not sustainable and need to be addressed.”
The European Commission announced last year that it would examine possible tariffs on electric cars from China. Chinese electric vehicle giant BYD has signed a deal to begin manufacturing cars in Hungary, where Xi will end his European trip on Friday.
Von der Leyen emphasized that the EU is not seeking to “decouple from China,” describing Europe’s relationship with China as “one of the most complex, but also one of the most important.”
According to reports from Paris, Xi’s state visit will focus on the wars in Ukraine and the Middle East, economic issues and climate protection. Cooperation in the fields of culture, sport and science are also on the agenda.
Following the meeting at the Élysée Palace, Macron and Xi plan to meet in the afternoon for one-on-one talks. A Franco-Chinese business meeting and a state banquet are scheduled for the evening.