Earlier on July 17, French President Macron and German Chancellor Merz reportedly raised concerns over China-EU trade imbalances, industrial subsidies and the renminbi (RMB) exchange rate. At the same time, they stated France and Germany were not anti-China and were not seeking to decouple from China, while recognising China’s innovation achievements and expressing willingness for open dialogue.
China recently said the EU’s trade and economic problems do not stem from China and that it can be a partner in addressing them.
The statement follows French and German concerns over trade imbalances, industrial subsidies, and the RMB exchange rate.
For sourcing and supply-chain teams, the signal is continued dialogue rather than decoupling between China and Europe.
Lin said, “Those differences should not be an obstacle to China-EU mutual trust and co-operation, the pretext to decouple and sever supply chains, and still less be used as an excuse for making groundless accusations against China,” adding that China attaches high importance to economic and trade differences with the EU and believes both sides can handle them through dialogue, consultation and policy interaction.
He noted China-EU economic and trade relations are ‘win-win in nature’, adding that China never seeks a trade surplus with Europe and that the trade structure is shaped by international division of labour, competitive advantages and other factors.
Under the World Trade Organization (WTO) framework, international trade is a two-way street and there is no forced trade, Lin said. He emphasised China abides by WTO rules and basic norms of the market economy, including free trade, fair competition and open cooperation, and added there are no WTO-prohibited subsidies in China.
On currency, Lin said, “China is a responsible major country. We have never manipulated currency rate, and will not undervalue our currency to gain a competitive edge, still less will use currency rate as a tool to shield us from external disruptions including trade disputes.”
Lin mentioned protectionism leads no way out and that co-operation remains the way forward, adding many European companies have recently argued that decoupling would not work and called for more cooperation with China, and that the first meeting of the China-EU Trade and Investment Consultations produced comprehensive, in-depth and constructive discussions and new progress.
He noted France and Germany, as core EU member states, should take a rational and practical approach, help the EU move in the same direction as China and address concerns through dialogue and negotiation to support a more balanced and sustainable China-EU trade relationship.
Fibre2Fashion News Desk
