EU ready to make 'full use' of trade defence tools against China, von der Leyen warns Xi
The European Union stands ready to flex its muscles to protect the bloc from China's aggressive trade practices, European Commission chief von der Leyen warned Monday following a three-way meeting with Macron and Xi.
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00:00The European Union will stand up to China's aggressive trade practices and protect its
00:07homegrown industries from being decimated. The warning came from Commission Chief Ursula
00:12von der Leyen following a meeting with Chinese President Xi Jinping alongside French President
00:17Emmanuel Macron. It is the clearest sign to date that Brussels is ready for a potential
00:22trade war with Beijing amid speculation the bloc is preparing trade tariffs against some
00:27Chinese products. We stand ready to make full use of our trade defence instruments
00:35if this is necessary. Europe cannot accept market distorting practices that could lead
00:42to de-industrialisation here at home. The Chinese government is propping up its manufacturing
00:49industry with subsidies and cheap loans for its domestic companies. The EU claims that
00:54an influx of inexpensive Chinese products is saturating its markets, preventing European
00:59industries from competing on an equal basis. These subsidised products such as the electric
01:08vehicles or for example steel are flooding the European market. At the same time, China
01:16continues to massively support its manufacturing sector and this combined with a domestic demand
01:23that is not increasing, the world cannot absorb China's surplus production. Brussels
01:32has reacted with anti-dumping inquiries into electric vehicles, solar panels and wind turbines,
01:39industries considered strategic and where the EU is losing its competitive edge.