European Commission President Ursula von der Leyen said Tuesday that the EU is seeking a more balanced relationship with China and engagement with the US, reminding Americans of their interdependence with Europe.
China’s trade distortions
The EU has adopted “defensive trade measures” in response to “Chinese market distortions,” von der Leyen said in a speech at the Davos World Economic Forum. However, she stated that they are ready to continue discussions with China.
“We must engage constructively with China to find solutions in our mutual interest,” the EU chief said, adding that this year marks 50 years of the bloc’s relations with China. “I see it as an opportunity to engage and deepen our relationship with China and, where possible, even to expand our trade and investment ties.”
In October last year, the EU voted to impose tariffs of up to 45% on China-made electric vehicles (EVs), even after some members of the bloc voiced unease about the decision, saying it might cause a trade war.
The EU said the move is aimed at protecting the European auto industry. The EU believes China-made EVs benefit from government subsidies, which unfairly undermine European competitors.
On Monday, the bloc filed a new complaint with the World Trade Organization (WTO) over China’s “unfair and illegal” practices concerning high-tech patent royalties, alleging that Chinaunfairly imposes worldwide royalty rates for standard essential patents, set below market levels, putting at a disadvantage the European high-tech firms that rely on licensing revenue.
US ties
Von der Leyen also reminded Americans of their close ties with Europe and said it is the EU’s priority to engage with the US, discuss common interests, and be ready to negotiate.
“No other economies in the world are as integrated as we are,” Von der Leyen said. “European companies in the United States employ 3.5 million Americans. And another million American jobs depend directly on trade with Europe. Entire supply chains stretch on both sides of the Atlantic.”
She added that of all American assets abroad, two-thirds are in Europe. The US also provides over 50% of the region’s LNG.
“The trade volume between us is $1.6 trillion (€1.5 trillion), representing 30% of global trade. A lot is at stake for both sides.”
Last month, US President Donald Trump told the EU to increase its purchase of American oil and gas, threatening to impose tariffs on goods from the bloc if it did not comply.
The move underscores Trump’s ‘America First’ energy strategy, aimed at boosting US energy exports and reducing trade deficits.
Geostrategic competition
The European Commission president also noted in her speech the advent of a new era of harsh geostrategic competition, underscoring the shifting global landscape characterized by rivalries in trade, technology, and influence among major powers.
She emphasized the need for a coordinated European response to assert its role in this evolving dynamic.
