US, EU say they can partner to hold China to account on trade distorting policies

The joint statement was issued by US Trade Representative Katherine Tai, US Secretary of Commerce Gina M Raimondo, and European Commission Executive Vice President Valdis Dombrovskis.

They also announced the start of discussions to address global steel and aluminium excess capacity.

Ambassador Tai, Secretary Raimondo, and Executive Vice President Dombrovskis acknowledged the impact on their industries stemming from global excess capacity-driven largely by third parties.

"The distortions that result from this excess capacity pose a serious threat to the market-oriented EU and US steel and aluminium industries and the workers in those industries," the statement read.

"They agreed that, as the US and EU Member States are allies and partners, sharing similar national security interests as democratic, market economies, they can partner to promote high standards, address shared concerns, and hold countries like China that support trade-distorting policies to account," it added.

The comes as tensions between the western countries and China have escalated in recent months over a range of issues.

In March, the United Kingdom, Canada, EU and the US teamed up to slap sanctions on Chinese officials over human rights violations in Xinjiang, a sign that the Biden administration plans to use alliances to counter an increasingly assertive China.

China also retaliated swiftly to the European sanctions, banning 10 European individuals and four entities and associated individuals from entering the country, including Macau and Hong Kong. The sanctions by Beijing have left China's investment agreement with Europe in tatters.