China rebuked Brussels’ export policies as illogical just ahead of a summit with European Union envoys.
“Imposing severe limits on high-tech exports to China while aiming to boost exports to us contradicts common sense,” stated Wang Wenbin, a spokesperson for the Foreign Ministry in Beijing on Wednesday.
The context behind this statement revolves around the substantial trade deficit in favor of China, anticipated to be a key discussion point during the meeting led by EU Council President Charles Michel and European Commission President Ursula von der Leyen with Chinese head of state and party leader Xi Jinping on Thursday.
Von der Leyen emphasized before heading to Beijing, “European leaders won’t tolerate an enduring trade imbalance.” She highlighted that while the EU has “tools” to safeguard its market, it prefers negotiated resolutions.
EU statistics indicate a recent trade deficit nearing €400 billion ($432 billion).
Wang countered on Wednesday, asserting that the data fails to accurately represent the trade dynamics between Europe and China. He noted that over a third of European companies’ exports from China circle back to Europe, suggesting that while China appears to have a surplus, Europe reaps a “considerable” portion of the profits.
In addition to addressing the trade deficit, EU representatives aim to tackle the unfair competitive landscape for European businesses in China.
Conversely, China is expected to raise concerns about Brussels’ ongoing probe into Chinese electric car subsidies and the EU’s plans to reduce reliance on China in crucial sectors of its economy.