China has urged Germany and France not to push the European Union into protectionist measures after the two countries proposed new tools against unfair trade practices by third countries. Beijing made the criticism ahead of a new round of talks between the European Union and China on strained economic relations.
“Protectionism cannot boost competitiveness. Separating and disrupting supply chains will harm others without benefiting one's own country“, China's Ministry of Commerce said.
The ministry urged Germany and France to remain committed to an open world economy and free trade, as well as to abide by World Trade Organization rules. Beijing also urged the two countries not to politicize economic and trade issues.
What Merz and Macron proposed
Earlier this week, German Chancellor Friedrich Merz and French President Emmanuel Macron sent a letter to European Commission President Ursula von der Leyen. In it, they stated that practices that distort market mechanisms threaten competition for European companies and increase the European Union's dependence.
According to the two leaders, the current legislation is no longer sufficient. They proposed two new measures. The first is aimed at diversifying supplies and should limit the risk of European companies becoming overly dependent on suppliers from individual countries.
The second measure provides for an accelerated procedure through which a country can be excluded from the European single market. The letter does not name a specific country, but the context is related to China's trade policy and the European Union's large trade deficit with Beijing.
Talks in Beijing are coming
The Chinese criticism comes just before the visit of European Trade Commissioner Maroš Šefčovič to Beijing on October 8 and 9. He is due to talk with Chinese Commerce Minister Wang Wentao about economic relations between the European Union and China.
The main topics are expected to be related to the trade imbalance, competition for European industry and possible new EU tools against practices that Berlin and Paris define as unfair.