European Parliament also takes tougher stance towards China

China is behaving more like a “systemic rival” than a partner or a competitor, and the EU should not hesitate to use its “toolbox” to respond. So says the European Parliament, a day before Trade commissioner Maroš Šefčovič travels to Beijing.

Since 2019, the European Union has defined the regime in Beijing as a “partner, competitor and systemic rival”. But since then, “it seems clear that China is steering relations towards systemic rivalry”, according to the report, which was adopted by 454 votes to 86, with 110 abstentions.

The EU’s trade deficit with China has risen to 1 billion euros a day. For Hilde Vautmans, an MEP for Anders (Flemish liberals), who drew up the report, “the EU has kept its market open for too long without receiving equivalent access from China”. “We have tolerated unfair competition for too long, at the expense of European businesses, and for too long we have stood by as China has tested the limits of international law,” she said.

“Our message is clear: no more dumping, no more espionage, and fair competition,” Vautmans said in Strasbourg.

To rebalance relations, the report recommends that the EU make full use of its “toolbox”: the anti-coercion instrument, measures against industrial overcapacity, stricter checks on goods produced using forced labour, and the screening of investment in ports, electricity grids, 5G and other sectors.

The text also recalls violations of fundamental rights, for example against the Uyghurs, in Tibet and in Hong Kong, and condemns the conduct of Chinese companies helping Russia in its war in Ukraine.

On Monday, France and Germany also called on the EU to create a new legal instrument that would enable it to respond more quickly to trade wars.