China ready to expand import of EU products

China and the European Union (EU) agreed this Monday to “strengthen” their macroeconomic policies and “respond to the challenges” during the tenth high-level economic and trade dialogue held this Monday in Beijing.

Chinese Vice Premier He Lifeng announced in a meeting with the press that both sides had “frank discussions” and that both sides are “committed to dialogue and coordination.”

“China is ready to expand imports of EU products,” He said after meeting with the vice president of the European Commission (EC) and head of Commerce, Valdis Dombrovskis.

However, he also noted that Beijing hopes that the EU will not place impediments to the import of its high-tech products.

He pointed out that the bilateral investment agreement, frozen since 2022, should be signed “as soon as possible”, and affirmed that both parties will create working groups to discuss the reform of the World Trade Organization (WTO).

Dombrovskis considered that the Asian country can do more to correct the trade deficit in the bilateral trade relationship, favorable to China, and indicated that the concerns of community companies operating in China were addressed.

“We are two key global actors and we have responsibilities, for example in the face of climate change, so we must improve cooperation on this front”said.

Furthermore, the European commissioner conveyed to the Chinese counterpart that the war in Ukraine – towards which the Asian country has shown an ambiguous position from the beginning – is a threat “not only against civilian lives, but also damages the global supply chain, including food”.

Dombrovskis is in China for a four-day visit that has included the tenth EU-China high-level economic and trade dialogue, a trip that comes shortly after Brussels announced the opening of an investigation into the Asian giant for its subsidies to its electric vehicles.

The Latvian politician today asked Beijing in a speech at Tsinghua University to address its “lack of reciprocity” in its economic relations with Brussels in order to “restore trust.”

“We call on China to address the lack of reciprocity. The numbers speak for themselves. The current trade deficit amounts to 396 billion euros in favor of Beijing. “Reciprocity in this and other areas would help restore trust,” said.

Dombrovskis added that, in a “world characterized by growing geopolitical tensions,” “China and the EU they must work harder” to “continue building positive cooperation.”

“We are at a crossroads, but we can choose a path toward mutually beneficial relationships. “A path based on open and fair trade and investment,” he assured.

Otherwise, “both sides would opt for a path that would slowly distance them,” noted the Latvian politician.

“The shared benefits we have enjoyed in recent decades would weaken and fade. And, as a result, our populations and our economies would have fewer opportunities.”he highlighted.

Dombrovskis expressed that European companies are “concerned about the direction China will take” in the future.

“The Chinese government has created a more politicized business environment by expanding its tools to protect its national security and development interests. But China remains an attractive market, and many European companies still want to invest here, but only if the conditions are right.”he claimed.

The community politician announced his trip to China after the president of the EC, Ursula von der Leyenstated that Brussels is going to open an investigation into that country for the subsidies it grants to its electric vehicles, lowering their price “artificially.”

“Global markets are flooded with cheaper Chinese electric cars and their price is kept artificially low thanks to huge state subsidies,” Von der Leyen stated.