Trade policy: China criticizes plans for new EU trade instruments

China has criticized Germany and France for calling for new European safeguards against unfair trade practices. “Protectionism cannot increase competitiveness,” said a spokesman for the Ministry of Commerce in Beijing. Decoupling and cutting supply chains harmed others and did not benefit oneself.

Germany and France should stick to openness and free trade and comply with the rules of the World Trade Organization (WTO), it said. Beijing called on both countries not to encourage the EU to use protectionist instruments and not to politicize economic and trade issues.

Merz and Macron are calling for new instruments

Chancellor Friedrich Merz and French President Emmanuel Macron jointly spoke out in favor of new protective instruments. Systematic market-distorting practices endanger competition for European companies and lead to increasing dependencies, according to a letter to EU Commission President Ursula von der Leyen.

Among other things, the heads of government are proposing an instrument to prevent excessive dependence on suppliers from individual countries. In addition, a procedure is to be created with which another country could be excluded from the European internal market in an expedited manner.

Merz and Macron do not name a specific country. The main reason for this is likely to be Chinese trade policy. The EU accuses China, among other things, of state subsidies and overcapacity that make it more difficult for European companies to compete.

EU Trade Commissioner for talks in Beijing

The criticism from Beijing comes just before new trade talks. EU Trade Commissioner Maros Sefcovic is expected in Beijing on Thursday and Friday. Talks are planned there with China's Trade Minister Wang Wentao about the strained economic relations.