GROWING GLOBAL TRADE UNCERTAINTY
Despite progress, Brussels says key concerns remain unresolved
“There are issues and concerns the EU has had going back many months and even years that we would require China to address,” said European Commission deputy chief spokesperson Olof Gill.
He added that these include industrial overcapacity, the unfair use of trade instruments and the persistent trade deficit.
Rather than cutting ties, the EU is pursuing a strategy of “de-risking” – safeguarding critical supply chains while continuing economic engagement with China.
French President Emmanuel Macron has echoed calls for rebalancing the relationship, urging fewer imports and greater Chinese investment in Europe.
Meanwhile, Beijing has signalled it wants deeper cooperation with the bloc amid rising global trade uncertainty.
However, new EU proposals on cybersecurity could complicate that push. Measures under consideration would restrict “high-risk” suppliers like Chinese technology giant Huawei from Europe’s critical telecommunications networks.
Linlin Liang, director of communications and research at the China Chamber of Commerce to the EU, warned that such steps could undermine business confidence.
She argued that competition cannot be considered fair if the Commission seeks to bar particular companies from certain countries without clear evidence, noting that such moves would seriously undermine fair competition within the EU.
Caught between an increasingly assertive China and an unpredictable US, the EU is stepping up efforts to diversify its trade partners.
However, recent deals with India and the Mercosur bloc of South American nations could take years to fully materialise, and are unlikely to match the scale of Europe’s economic relationship with China and the US.