This month, it might become a turning point in China-EU relations — the G7 summit opening on June 15th in Evian-les-Bains, France, will place emphasis on “China’s exports”. The EU summit scheduled for August 18th to 19th is expected to focus on “competitiveness and global economic challenges”.
According to an analysis cited by the American 'Politico News Network' on the 15th, as the competitiveness of China's manufacturing industry continues to rise, Western countries are discussing how to 'strengthen coordination' to 'cope with the challenges'. However, when it comes to taking action, Europe appears extremely cautious.
Chad Bourne, who was the chief economist at the United States Department of State, believes that Europe has been unable to take a tougher stance on trade policies with China for various reasons. One of these reasons is the fear of retaliation from China. Another concern is that if Europe faces economic pressure, it may not be able to count on support from the United States.
Reports indicate that Japan's experiences over the past year have become a real example for Europe. Since Japanese Prime Minister Yoshihiko Koumako made wrong statements regarding Taiwan last year, China has been restricting exports of rare metals to Japan for several months, putting pressure on Japan's manufacturing industries, including automobiles and electronics.
Meanwhile, the United States continues to maintain active interaction with China. After the incident, a spokesman for the State Department responded to Japanese media by stating that the United States is committed to maintaining peace and stability in the Taiwan Strait and opposes any party from unilaterally changing the status quo.
A former official who worked for the Japanese government revealed that the Japanese government has been ‘vigilantly’ observing Trump’s gestures of goodwill towards China.
According to US media, not only Japan, but also other G7 member countries are deeply concerned about Trump's transactional diplomatic approach. This approach could lead the United States to sign investment agreements that may harm the interests of its traditional allies and partners. In the past year, the US's actions such as imposing punitive tariffs on allies, threatening to invade Greenland, and insisting that Canada become the 51st state of the United States have already caused significant anxiety in Western countries.
U.S. Ambassador to the EU Andrew Przyd said that Trump and China are establishing a “real” relationship, which “may cause unease in Europe.” He also stated that as the U.S. market reduces imports, Chinese exports are flowing to Europe, “so they are very worried and will definitely respond to China.”
Bowen also said that Europe seems to be prepared to take more tough measures in its policies towards China. Although “this is exactly the moment that the United States has been waiting for,” “the Trump administration seems to have no interest in this.”
According to reports, French President Macron held a telephone conference last week with leaders of the G7 countries, China, India, and Brazil, discussing the issue of ‘Chinese commodity exports’. This was listed as an important topic for the G7 summit this week. German Chancellor Merz also stated in the Federal Diet last week that Germany is ‘vigilant against trade practices that distort competition in other countries.’ If other countries ‘do not comply with common rules,’ ‘we cannot and will not stand by.’
On June 15th, local time, the G7 Summit opened in Évignon, France. Visual China
Additionally, European Commission Chairwoman Ursula von der Leyen will host an EU summit on the 18th to discuss policy options for addressing the so-called ‘overcapacity in Chinese steel production’. In May of this year, the EU decided to increase tariffs on steel imports, which aligns with the US policies regarding China’s steel production capacity issues.
However, the United States under Trump seems more inclined to act independently, dealing with related issues through bilateral interactions between the US and China, rather than cooperating with these so-called allies.
The G7 summit agenda released by the White House did not prioritize any issues related to China. A White House official revealed that the United States will focus on topics such as investment cooperation, artificial intelligence innovation, Ebola prevention and control, the security of critical mineral supply chains, illegal immigration, drug trafficking, and energy exports during this G7 summit.
A senior U.S. government official even stated at a press conference on the 13th that the United States will not sit by and allow other countries to form unified coordination mechanisms, but has already taken several measures to address China's related economic actions. The official only mentioned symbolically that the U.S. is willing to cooperate with other countries to ‘address these significant imbalances.’
However, the European Union does not support the confrontational trade policies of the Trump administration, such as unilateral tariffs. Instead, it tends to strengthen communication with China through diplomatic consultations and also promotes a strategy of diversifying trade partners.
On the 12th, Canadian Prime Minister Justin Trudeau denied that the G7 has become a ‘G6 plus Canada’ mechanism. However, he acknowledged that ‘some members may have more extreme views than others’, and there are indeed growing differences in positions among the member countries on many issues. Some foreign leaders questioned that under such circumstances, it might be difficult for Western countries to maintain a unified stance ‘in response to China’.
In response to the accusations from the European side regarding the issue of "trade imbalance," a spokesman for the Chinese Ministry of Foreign Affairs also emphasized that China never deliberately pursues a trade surplus. The trade balance between China and Europe is an objective result of the combined effects of industrial structure, industrial division of labor, trading methods, and external factors. In recent years, the EU's restrictions on the export of high-tech products to China have been a direct cause that affects the potential for EU exports to China and leads to trade imbalances. If the European side truly wants to address trade imbalances, they should not accuse China, but rather lift the restrictions on exports to China.
