The European Union may have to reduce its level of openness to Chinese imports without greater reciprocity from Beijing, European Commission President Ursula von der Leyen said after talks with leaders of the world's second-largest economy, Reuters reported. She also said that Beijing had started to look into this issue and had expressed readiness to support greater consumption, Reuters added, quoted by BTA.
"Unlike other major markets, Europe keeps its market open to Chinese goods. This reflects our long-standing commitment to rules-based trade. "However, this openness has not been achieved by China," von der Leyen told reporters after meeting Chinese leaders in Beijing.
She added that overcapacity (mass production of goods - ed. note), subsidized production that does not meet domestic demand and the restriction of Chinese imports from other markets, which in turn puts pressure on the EU single market, are also problems that need to be addressed.
"We need to see progress on this issue, because without progress it would be very difficult for the European Union to maintain its current level of openness," she added.
The European Union announced that it was ready to engage in a constructive dialogue to resolve the current conflicts after a meeting between European Commission President Ursula von der Leyen, European Council President Antonio Costa and the Chinese president, DPA reported. Until that happens, however, Brussels will take measures to protect its legitimate interests.
"For trade to remain mutually beneficial, it must become more balanced," von der Leyen said at a press conference after the talks. "Europe welcomes competition," she added. "We like competition, but competition must be fair."
Despite being the second-largest trading partners, relations between the EU and China have become increasingly strained. Brussels is concerned about a record trade deficit of more than 300 billion euros last year and China's restrictions on exports of critical rare earth elements used in electric motors and sensors.
In Beijing, the two countries agreed on a new mechanism to help resolve potential problems related to rare earth exports, von der Leyen said.
"We agreed – and this is new - to have an improved mechanism for export supplies," she said at the press conference.
– to have an improved mechanism for export supplies," she said at the press conference.
–In other words, if there are obstacles, this improved mechanism for supporting the supply chain can immediately check and solve the problem,” said von der Leyen.
The EC President did not provide further details on exactly how the mechanism would work, including the types of exports it would cover and whether China had asked for any concessions in return for agreeing to this step.
Ursula von der Leyen noted in Beijing that –an impressive 14.5 percent of China's total exports” currently go to the EU, while only 8 percent of EU exports are destined for China.
The summit coincides with the 50th anniversary of the establishment of diplomatic relations between the EU and China.