European Commission President Ursula von der Leyen says the EU will use every tool available to cut its unsustainable trade deficit with China. The gap reached €1 billion a day last year, and Brussels wants results from ongoing talks with Beijing by October.
Ursula von der Leyen said on Wednesday the European Union will use every possible means to reduce its unsustainable trade deficit with China. The European Commission president said the imbalance had reached a tipping point.
A €1 billion daily gap
Von der Leyen said the goods trade deficit reached €1 billion ($1.15 billion) a day last year. She added that Europe was already suffering from a second China shock through deindustrialisation. The comments came during her state of the Union address to the European Parliament.
Commission under pressure to deliver
EU leaders called on the European Commission in June to produce results from dialogue with China and to ensure the bloc has all the instruments it needs to defend its interests. European Trade Commissioner Maros Sefcovic, who leads the talks, said he wants to achieve tangible results by October.
Von der Leyen said it was in both sides' interests to work together to find a solution. According to Reuters: "Words are good. But deeds are better."
Stockpiling critical minerals
Von der Leyen also highlighted the EU's reliance on China for many critical minerals, notably rare earths. She said the bloc would establish a new European Corporation on critical raw materials to help the 27-nation bloc obtain and stockpile what it needs, urging Europe to build up its reserves urgently.
Source: Economic Indicators News
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