Hong Kong
CNN
–
As two of the biggest economic goals in Donald Trump’s trade war, some analysts believed that the European Union and China could work together to take away their common position.
However, Thursday’s summit between both sides of Beijing will instead It is expected to introduce the friction and mistrust of deep sitting, spreading a cleft between the two heavyweights.
Council of Europe President Antonio Costa and European Commission President Ursula von der Leien will hold summit consultations with Chinese leader Xi Jinping and Beijing’s Chinese Prime Minister Li Zian.
The conference is because uncertainty in US trade relations has urged Beijing to tighten relations with the EU and other major economies as both countries face increased tariffs on exports to the US.
But the list of complaints between both sides sets that goal out of reach.
The EU was not shy about the concerns leading up to the summit. Officials in recent weeks have repeatedly reiterated years of concern about what they say. Cheap Chinese products “flood” the European market, warning about Beijing’s move to narrow down the rare earth supply chain, and denounced Russia’s continued support for the war in Ukraine.
Beijing was hit by these concerns, including the move of the 27-person block last year raising tariffs on electric vehicles, and in clear retaliation, it launched its own trade probe range.
After the EU announced last month that it would ban Chinese companies from taking part in public bids for medical devices beyond certain values, Beijing fought back with its own curb on government purchases of European-made devices.
On Monday, China’s Commerce Ministry denounced the EU’s decision to include two newest Chinese banks and a few other companies Sanctions against Russia over invasion of Ukraine. He argued that the move would have a major negative impact on the economic and trade relations between China and the EU.
China’s Commerce Minister Wang Wentao asked for a strict statement on Tuesday over sanctions on video calls with EU trade chief Maros Sefcovic. China’s Commerce Ministry said in a statement that the two officials had a “fun and detailed” discussion on key issues of economic and trade cooperation and concerns between China and the EU.
All this sets the stage for a controversial summit ostensibly aimed at celebrating a 50-year relationship.
During this week’s media briefing, Abigaervaserie, head of the diplomatic team at the German Merix Think Tank, said:
And in some respects reflecting the friction between China and the US, she added: “China created leverage in Europe, and it became a tough escalation with Europe, linking all the issues.
Trump’s trade war and his negotiations with both major economies cast a long shadow over the summit.
Earlier this year, there were indications that Beijing wanted to share adversity in the face of tariff threats from the US. And earlier this month, Beijing gave major European cognac makers a reprieve last year, following an anti-dumping probe that is widely considered retaliation for the block’s imposing tariffs of up to 45% on electric vehicles.
However, in separate speeches to G7 leaders and European lawmakers in recent weeks, Vondel Reyen has made it clear that the Bloc’s deep concerns about Beijing have not been resolved.
“China is using this quasi-monopoly (rare earth) not only as a negotiation chip, but also weapons to undermine competitors in key industries,” she held a meeting in Canada in June.
Beijing has extensive control over the supply chain of keys for these key minerals, from EV batteries and mobile phones to fighter jets and trade spats with the US, from all batteries and fighter jets and global manufacturing. China agreed during a ceasefire with the US in June to facilitate management of these.
Von Der Leyen said, “We have called for a unified G7 action to put pressure on Beijing as it is flooding global markets with an overpowered subsidies that it cannot absorb.
Von der Leyen has been a Hawkish in Beijing for a long time, but Chinese voices see her as the US to ease trade frictions.
However, Chinese leaders are taking part in this week’s summit in what is considered a relatively strong position with the EU when the US talk comes.
Beijing is seeing the decision to play hardball with the US by increasing the Tatt taxation and then retaliating the power of rare earth leverage, bringing the US to the negotiation table twice, bringing a trade framework agreement.
Beijing has already choked the victory, despite friction remaining, including China’s purchase of Russian oil and rising tariffs on Washington’s Chinese products.
Meanwhile, the EU is cutting contracts with the US ahead of the August 1 deadline to avoid heavy tariffs. They may also be at greater risk than their Chinese counterparts.
“The worst-case scenario is finding yourself in a two-song trade war with the US and China as Europe is pushing for a sort of Faustian bargain with Beijing.
This background makes the likelihood of concrete results appear to be low for observers on both sides.
Rather than not wanting to cut ties with China, Europe wants to “rebalance” economic ties, which saw its deficit of 300 billion euros last year. It also aims to “derisk” the supply chain and work with China on shared global issues like this week’s potential area of consensus: climate change.
But experts say that the important hold in Europe is the sense that Beijing is not driven by Brussels’ core concerns.
“We don’t have an EU-China summit that has produced real deliverables over the years. This is no different. It reflects Beijing’s refusal to address two of the biggest concerns of the EU, reflecting the increasingly disproportionate economic relations in European industry and the ongoing support of China.
China rejected European concerns about the industrial overcapacity. Export floods are unfounded, and recent state media outlets say that instead of “realigning trade,” Europe “needs to recalibrate that way of thinking.”
Instead, Beijing is expected to push for lowest prices for Chinese-made EVs in Europe instead of tariffs and continue to set free access to European technology and markets. And even if Russia intensifies its attack on Kiev, Beijing is unlikely to present any indication of a change in its position in its close partner, Moscow.
China’s foreign minister reportedly told a top European Union diplomat earlier this month that Beijing could not accept that Russia had lost its war with Ukraine.
China has long advocated neutrality in the war and defended “normal trade” with Russia, but with the increasing purchase of oil and ships, the Western leadership says Power Russia’s defense industry.
However, Chinese observers feel that there is still room for collaboration as both sides sit on Thursday.
“The European Union needs China, and China needs the European Union to solve the challenges from climate change to AI and global conflict,” said Wang Yiwei, director of the Institute of International Affairs at Lenmin University in Beijing.
Indicating the view that the EU could be a counterweight for China to its partners in promoting US friction and globalization, he added, “If China and the European Union are seeking cooperation in favor of both sides, the so-called new Cold War cannot be won.”
