Trade confrontation threatens: 'supercrucial' meeting between the EU and China

Trade confrontation looms: 'supercrucial' meeting between the EU and China - Laura van Megen correspondent China - Ardy Stemerding correspondent European Union Beijing is the setting for a meeting between the European Union and China today and tomorrow. After months of rising tensions over trade, Eurogroup Commissioner for Trade Sefcovic meets Chinese Trade Minister Wang Wentao. The European Union wants to find a solution as quickly as possible for an increasingly imbalanced trade balance that has now reached 1 billion euros per day. This is severely affecting European industry and employment. Sefcovic calls this meeting "supercrucial". China benefits from the status quo, as it earns a lot from European consumers. An increasing share of Chinese economic growth must come from exports, as the domestic economy is sputtering. Fierier tone The tone of the European Union has become increasingly sharp in recent months. In her annual address to the European Parliament, Commissioner Von der Leyen emphasized that the EU-China dialogue must yield concrete results. Otherwise, the EU will "use all the means at its disposal to bring the relationship into balance". The EU accuses China of unfair trade practices, such as state aid and artificially keeping the Chinese currency low. European companies cannot compete against this. If this meeting does not yield sufficient results in the eyes of the EU, trade measures may follow. These could consist of tariffs or even restrictions on the import of Chinese products. Not to be accommodated There is little sympathy for European concerns in China. China points to the strength of its own industry: efficient supply chains; modern factories and cheap logistics that bring packages quickly to customers in Europe. But that is only part of the story. European companies do not get the same access to the Chinese market as Chinese companies in Europe. Chinese companies can also easily obtain cheap loans or subsidies, and the Chinese government helps them with free land or business space. China does not need to accommodate the EU. Beijing sees the EU as a weak and divided player and thinks it can do as little concession as possible by having member states play against each other. This is a strategy China uses more often. Last year, when the European Commission wanted to impose tariffs on Chinese electric cars, China retaliated with tariffs on French cognac. This way, China pressured France not to cooperate with the tariffs on electric cars. If the EU comes with measures this week, China will undoubtedly respond with a counterattack. The European commitment The EU hopes to make agreements with China to limit exports to Europe, for example of hybrid cars. The EU also wants better access to the Chinese market for European producers. If China is not willing to close a trade deal, the EU threatens additional import tariffs in sectors where Chinese dominance is too great. Furthermore, Germany and France, the most powerful countries in the EU, have devised a more far-reaching instrument. This will make it possible to deny China access to the EU's internal market faster than now. Germany's support for this is also telling. The country has always been cautious in dealing with China, fearing that German industry would be affected by Chinese countermeasures. Focus next week Next week, Trade Commissioner Sefcovic will present the results of his meeting to the EU leaders, if they are in Brussels for an EU summit. Then it will become clear whether the EU is indeed prepared for hard measures, even if they cause pain in Europe due to rising prices. Experts urge the EU to take these measures because the economic consequences of doing nothing are greater. In the coming weeks, it will be apparent whether the EU follows the advice, or whether China still gets its way and the EU remains divided in taking hard action.