Despite the tense relationship with China, the EU foreign policy chief has ruled out economic decoupling from the People’s Republic. “Nobody is considering the possibility of decoupling the European economy from China’s,” said Josep Borrell in Beijing. Trade between China and Europe is so large that decoupling, even if one wanted to, is not possible. The aim is to check dependencies industry by industry and product by product in accordance with commercial law and, if necessary, reduce them.
The 76-year-old justified the EU’s actions with lessons from the past. During the corona pandemic, for example, it was found that “not a single gram” of the painkiller paracetamol was produced in Europe anymore because production had been outsourced. China is an important manufacturer of many pharmaceuticals. “It’s common sense to diversify sources of supply,” Borrell said. It is a precautionary measure. China is doing exactly the same thing.
During his multi-day trip to China, the EU High Representative for Foreign Affairs and Security Policy spoke with Foreign Minister Wang Yi in Beijing and met business representatives in Shanghai. The EU is China’s most important export market. However, the relationship between the Union and the People’s Republic has deteriorated due to an ongoing investigation by Brussels into Chinese subsidies for electric car manufacturers. According to media reports, the Union could also want to investigate aid money for Chinese steel. In both cases, the EU accuses China of giving its manufacturers an advantage on the EU market because the affected products could be offered cheaper compared to EU competition.
China’s Ministry of Commerce warned this week that the EU’s actions violated international trade rules. Conversely, the EU sees itself disadvantaged by the enormous trade deficit to China’s advantage and complains about unfair competition conditions on the Chinese market.
