Advertisement
EU chamber warns of ‘slow-motion train accident’ with China, says something needs to change
- China’s focus on the supply side to drive economic growth is creating problems in Europe, according to the European Union Chamber of Commerce in China
- Honest conversations are needed, while China should steer away from excessive self-reliance to create a more sustainable environment for foreign businesses
Reading Time:3 minutes
Why you can trust SCMP
77
Luna Sunin Beijing
As tensions between China and Europe simmer over trade imbalance and de-risking moves, a leading European business chamber has called on Beijing to expand domestic demand and address bilateral concerns through high-level dialogues.
Both sides need more nuanced and precise strategies to strengthen supply chains, while Beijing also should make efforts to retain European businesses, according to the European Union Chamber of Commerce in China.
China’s focus on the supply side to drive economic growth, as highlighted by upbeat exports in the first two months of the year, is creating problems in Europe and elsewhere as domestic industries are being crowded out, said chamber president Jens Eskelund.
Advertisement
“Something will need to change because Europe cannot just accept that strategically viable industries constituting the European industrial base are being priced out of the market,” he said. “That is where trade becomes a security question.”
Tensions between China and the European Union increased after Brussels launched an anti-subsidy investigation into China’s electric-vehicle exports last year, which has the potential to deal a heavy blow to relations, while the bloc has also introduced a de-risking strategy to cut reliance on Chinese imports.
Advertisement
Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x