EU leaders keen on stronger steps to check China's unfair trade practices
New Delhi, June 19
EU leaders have asked the European Commission to come up with stronger measures to deal with China's growing economic might that comes at the cost of dumping cheap goods in other countries, according to a report in Politico.
The report cites an EU official as saying that leaders requested the Commission assess the EU's trade defense tool-box and eventually come up with new instruments, to ensure the bloc has what it needs to defend its interests against China's unfair trade practices.
Officials and diplomats, who were briefed on the summit discussion and were granted anonymity to speak about the confidential meeting, said the consensus was growing around the table to strengthen the EU's trade defences and develop new instruments to protect markets, according to the report.
China has excess production capacity for manufacturing various goods such as cars due to the lack of adequate domestic demand and therefore has to take recourse to dumping these goods in foreign markets. It's selling those products into the European market at low prices that European producers can't compete with and that's driving them out of business, the report observes.
Leaders want the Commission to keep engaging with Beijing. Chinese Commerce Minister Wang Wentao is coming to Brussels at the end of June for a meeting with EU trade chief Maroš Šefčovič.
"Everyone believes we need measures to reduce our dependence," Belgian Prime Minister Bart De Wever told Politico after the summit concluded. "And the subsidies provided in China-that's not fair. We need a response to that. The Commission intends to propose measures, and we'll continue to discuss this."
The report highlights that Commission President Ursula von der Leyen tried to find out from EU leaders how far they were ready to accept Chinese retaliation, as the bloc grapples with how to shield Europe's factories from China's cheaper high-end goods.
There will be a "short term analysis of existing tools and how to be used in a more efficient way," a second official said, stressing that developing new tools would take time to deliver and then get through the legislative process, the report added.
— IANS
Reader Comments
It's good that EU leaders are being cautious and want to avoid retaliation. We've seen what happens when trade wars escalate—everyone loses. But India should also strengthen its own anti-dumping mechanisms. We can't just be victims of this situation.
The EU is realizing what we've known for a while: China's "Belt and Road" isn't about development, it's about economic control. Their excess capacity is a feature, not a bug. India should be careful in our own free trade agreements and not get steamrolled.
I think the EU should focus on innovation and quality rather than just protective measures. Yes, China dumps goods, but European and Indian industries need to up their game. Competition is healthy—just not unfair competition. Let's see how Brussels handles this delicate balance.
As an Indian living in Europe, I see both sides. Chinese electric cars and electronics are very competitive on price here. But local factories are indeed closing down. India should watch this EU-China dynamic closely—our own solar panel industry was destroyed by cheap Chinese imports. Lessons to be learned. 🤔
As an American who has followed India's economy, I think the EU is right to be worried. China's state capitalism is a threat to all democratic markets. India and the EU should coordinate their responses at the WTO and beyond. United we stand against unfair trade.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.