China’s position on the Ukraine War and trade imbalance are discussed by the EU trade commissioner

On Monday, the trade commissioner for the European Union urged China to have a more equitable economic relationship with Europe, pointing out a trade deficit of around 400 billion euros (USD 425 billion) and cautioning that China’s stance on the conflict in Ukraine would jeopardize that partnership.

In a lecture at the esteemed Tsinghua University in China, Valdis Dombrovskis said that the EU and China confront huge political and economic challenges that may force them to drift apart.

According to a prepared transcript of his speech, he said that “Russia’s war of aggression against Ukraine, and how China positions itself on this issue, is the strongest, yet not the only, headwind.”

To co-chair high-level economic and trade negotiations with Chinese Vice Premier He Lifeng on Monday, Dombrovskis is in China. The EU’s rising trade imbalance with China, which grew to 396 billion euros last year, has alarmed EU leaders. Ursula von der Leyen, president of the European Commission, has initiated a probe into Chinese subsidies to electric vehicle manufacturers, claiming that an influx of less expensive Chinese automobiles is distorting the European market.

The probe has been branded by the Chinese government as a protectionist move intended to skew supplies. In his Tsinghua speech, Dombrovskis said that it will adhere to accepted procedures and be carried out after collaboration with relevant Chinese authorities and parties.

The absence of reciprocity in the economic relationship is something that the EU trade commissioner encouraged China to rectify, claiming that “the numbers speak for themselves.”

He said that in order to preserve its interests in growth and national security, China has made the economic environment more politicized, which has resulted in less openness, uneven access to procurement, and discriminatory standards and security requirements.

Dombrovskis mentioned the revised anti-espionage statute and a new rule on international relations as two instances where European businesses are having trouble understanding their compliance responsibilities.

He said of the laws, “Their ambiguity allows too much room for interpretation,” and added that they discourage new investment in China.

In order to assist the economy recover from a slump that has lasted after the easing of economic restrictions last December, Chinese policymakers have been attempting to entice back foreign investment.

Instead of joining the United States and much of Europe in denouncing the Russian invasion, the Chinese government has made an effort to maintain its neutral position in the conflict in Ukraine. Dombrovskis, a Latvian, pointed out that China has long made territorial integrity a cornerstone of its foreign policy.

According to the planned words for his speech, he added that “Russia’s war is a blatant breach of this principle.” Therefore, given that China’s own core values are violated, it is extremely difficult for us to grasp China’s position on Russia’s war against Ukraine.