[DE] Europe's discouraged uprising against China's superiority - WELT - Aussie Zone
Europe’s Timid Uprising Against China’s Dominance By Stefan Beutelsbacher, EU
Correspondent in Brussels After years of hesitation, Europe’s powerful leaders
are calling for a tougher trade policy towards China at an EU summit in
Brussels. However, this is primarily happening behind closed doors, as the fear
of retaliation is great. The most sensitive question arose around 9:30 pm, as
dinner was served to the 27 heads of state and government in the Brussels Europa
building. The core issue was how the EU can defend itself against China—this
major economic rival that floods the West with cheap products, from electric
cars and batteries to baby toys. On Thursday, Europe’s decision-makers met for a
summit; they intend to adopt a 22-page declaration by Friday evening. A draft
has already been seen which, however, does not mention “China” even once.
Somewhat hidden—under agenda item 38—there is only vague talk of a “strategic
debate” on “global macroeconomic imbalances.” After years of hesitation and
appeasement, the continent’s Prime Ministers and Presidents now want to show
toughness towards Beijing and make it clear to the government there that
business cannot continue as usual—that they must stop harassing Western
companies and subsidising their own. It was about nothing less than a new
European China strategy. So why is the country not mentioned in the EU summit
declaration? Suddenly, Europe is pushing back against the dominance of its major
economic rival “Everyone knows what is meant,” said Austrian Chancellor
Christian Stocker in a small group on the sidelines of the meeting in the
Brussels Europa building. “We are very cautious with many competitors, including
China.” Federal Chancellor Friedrich Merz was also reserved, publicly speaking
only of “geo-economic imbalances” and avoiding the word “China.” In this
Brussels night, much was once again typical of the EU: there was a desire to
demonstrate strength and convince the world—and perhaps themselves—of their own
significance. But then everything remained vague, encrypted in code words and
hidden behind ambiguity. The problem was not even named, out of fear of
provoking a reaction from China before Brussels could even take measures such as
new tariffs or quotas. “Most EU states have nonetheless understood that action
must finally be taken,” an official assured. “We no longer live in a world of
rosy ponies where everyone loves each other.” Europe, the man said, should act
more confidently in the future. “The continent is a large, strong market. We can
use that as leverage.” End of the Triad The EU’s last declaration on China dates
from 2019. At that time, the country was described as being simultaneously a
partner, competitor, and systemic rival. On Thursday evening, it was heard in
the Europa building that most heads of and government now describe the country
only as a rival. It may have been the end of the frequently cited triad. This
too is typical of the EU: vague on the outside, but during closed-door
discussions when the “leaders” are among themselves, blunt words are used. “It
was intense,” said one person who was present late Thursday evening. “China was
named very, very clearly.” No European state has a trade surplus with the
People’s Republic. On the contrary, Europe’s deficit is growing: in 2024 it
stood at €312 billion, and by 2025 it is expected to reach €360 billion. Since
2021, exports to the EU have increased by an average of six per cent each
year—while imports from the EU fell by 2.5 per cent. China now produces more
than 30 per cent of all goods in the world but consumes less than 15 per cent.
All these figures fuel a concern: that the EU will fall behind in the global
race for future technologies such as artificial intelligence and high-speed
chips. Many feared at the summit that the continent is at risk of becoming
increasingly dependent on an increasingly hostile country—for instance,
regarding rare earths, without which Europe’s energy transition and
digitalisation would be unthinkable. Despite all the platitudes, this summit
marks a turning point. For the first time, the EU appeared ready for a more
confident policy towards Beijing. But above all, a political will emerged in the
Europa building to risk more than before and to absorb the costs of potential
Chinese retaliation—to somehow endure a small trade dispute. According to
investigations by the European Commission, Beijing subsidises certain goods,
thereby gaining unfair advantages in global markets. This affects, for example,
electric cars, wind turbines, solar modules, and steel. Furthermore, according
to Brussels authorities, many dangerous goods from China reach Europe, such as
toys containing toxic chemicals. According to the heads of state and government,
all of this should soon change. Spain slows down China critics In total, they
aim to work through 60 agenda items at this summit. Alongside China, Thursday’s
topics included a possible EU accession for Ukraine, the situation in the Middle
East, and the strengthening of defence, as well as migration, reducing
bureaucracy, drug trafficking, and Ebola. On Friday, the focus will turn to the
next EU budget. All are important topics, but none, participants said, were
discussed as intensively as trade with the People’s Republic. “China,” said
Luxembourg Prime Minister Luc Frieden, “is an existential threat to our industry
if we do not address the economic and trade policy imbalances.” The German
government can at least warm to a tougher policy towards Beijing, even though
Germany would likely be most affected by potential retaliation. France, Italy,
Poland, Belgium, Denmark, Lithuania, and the many Netherlands also spoke in
favour of a more confident Europe at the summit. Spain, however, slowed things
down. Prime Minister Pedro Sánchez called China a “potential ally.” The EU, he
said, benefits from friends. There is already “enough fragmentation” internally.
Hardly any European leader seems so well-disposed towards Beijing; Sánchez has
already travelled there four times and is open to Chinese investment. It was
likely fine by him that the word “China” does not appear in the summit
declaration.