EU’s von der Leyen echoes Yellen’s calls for tough stance on Chinese overcapacity

European
Commission
chief
Ursula
von
der
Leyen
on
Tuesday
said
that
Europe
must
talk
tough
with
China
on
its
perceived
unfair
trade
practices,

echoing
calls
a
day
earlier
from
U.S. Treasury
Secretary
Janet
Yellen.

Speaking
ahead
of
German
Chancellor
Olaf
Scholz’s
trip
to
Beijing
later
this
week,
von
der
Leyen
said
European
companies
should
have
the
same
market
access
in
China
as
Chinese
firms
have
in
Europe,
according
to
comments
cited
by
Reuters.

She
also
urged
the
German
leader
to
take
a
hard
stance
with
Chinese
authorities
about
overcapacity
and
unfair
competitive
practices.

It
comes
after
Yellen
on
Monday
told
CNBC
she
would
not
rule
out
any
U.S.
measures,
including
potential
tariffs,
against
China
amid
concerns
that
Beijing
is
intentionally
flooding
international
markets
with
cheap
green
energy
products.

“I
wouldn’t
rule
out
anything
out
at
this
point.
We
need
to
keep
everything
on
the
table.
We
want
to
work
with
the
Chinese
to
see
if
we
can
find
a
solution,”
she
said
in
an
interview
with
CNBC’s
Sara
Eisen.

Chinese
overcapacity
has
become
a
major
point
of
diplomatic
tension,
with
the
U.S.
and
its
allies
contesting
that
excess
production
and
subsidized
goods
from
China
are
undercutting
domestic
businesses.

China,
for
its
part,
denies
the
claims,
with
China’s
Minister
of
Commerce
Wang
Wentao

saying
Sunday
that
the
rise
of
China’s
green
technology
industry
—
which
includes
electric
vehicles,
solar
panels
and
lithium-ion
batteries
—
is
the
result
of “constant
innovations,”
according
to
his
ministry.

It
also
contests
that
the
U.S.
—
through
initiatives
such
as
the
Inflation
Reduction
Act
—
is
subsidizing
its
own
manufacturing
industry.

Yellen
on
Monday
said
that
other
countries
may
explore
the
possibility
of
imposing
trade
restrictions
on
China
if
an
understanding
could
not
be
reached.

The
European
Union
has
so
far
resisted
implementing
such
measures,
given
its
strong
trade
ties
with
the
world’s
second-largest
economy. 

Berlin,
in
particular,
has
been
reluctant
to
slap
tariffs
on
Beijing’s
EV
industry
for
fears
of
retaliation
on
its
own
sizable
automotive
industry
—
a
key
avenue
of
German
exports
to
China.

Speaking
on
Monday
ahead
of
his
three-day
trip
to
China,
Scholz
said
he
was
skeptical
about
the
need
for
such
tariffs,
a
spokesperson
said,
according
to
Reuters.
That
is
despite
a
wider
ongoing
EU

probe
into “dumping”
of
subsidized
Chinese
EVs
into
Europe.

Scholz
is
due
to
arrive
in
China
on
Sunday
for
a
visit
that
will
include
a
meeting
with
Chinese
President
Xi
Jinping
and
Premier Li
Qiang.
He
will
be
joined
by
three
ministers
and
several
executives
from
the
business
community,
according
to

media
reports.

The
visit
is
Scholz’s
second
since
becoming
chancellor
and
his
first
since
November
2022.

Correction:
China’s
Minister
of
Commerce
Wang
Wentao
spoke
Sunday.
An
earlier
version
misstated
the
day.