Chinese companies operating in the EU have criticised Mario Draghi’s suggestion that tariffs may be needed to protect European industry from foreign competition, warning of an escalation in trade tensions between Brussels and Beijing.
The China Chamber of Commerce to the EU (CCCEU) also objected to the repeated condemnation of Chinese “overcapacity” and the portrayal of Beijing as a “high-risk supplier” of critical minerals in Draghi’s much-anticipated report on EU competitiveness, published on Monday (9 September).
“Regarding the report’s proposal to apply tariffs or other trade measures, the [Chinesische Handelskammer] “We warn against actions that could escalate trade tensions and disrupt the global supply chain for green technologies,” a spokesperson for the chamber, which represents many of the Chinese companies operating in the EU, told Euractiv.
The spokesman added that instead of “restrictive trade measures”, Brussels and Beijing should pursue a “cooperative approach” to combat climate change and promote sustainable development.
Draghi, former president of the European Central Bank, had previously written in his report that tariffs could be “justified” in cases of “unfair competition from abroad”.
However, he warned that such trade measures “should not be applied systematically.” Any attempt to imitate “the US approach of systematically excluding Chinese technology” would only delay the EU’s efforts to move towards a green economy.
In addition, the former Italian prime minister stressed that Chinese state-subsidised production of green technologies had “set some European industries back so far” that the introduction of tariffs “would only impose excessive deadweight costs on the economy”.
“Referring to China’s industrial overcapacity in green technologies overlooks the global demand for these products and the crucial role China plays in global decarbonization efforts,” said the China Chamber of Commerce spokesman.
“We are disappointed that this was seen as a threat. We believe China’s manufacturing capabilities should be seen as an opportunity to meet growing global demand for clean energy technologies at competitive prices,” they added.
Draghi had also called for Brussels to step up its efforts to diversify supplies of minerals important for the green transition and not rely exclusively on China. The spokesman noted that this call had also been misunderstood.
“Classifying China as high risk without recognizing the benefits of partnership could undermine opportunities for joint efforts to secure reliable and diversified supply chains,” the spokesman said.
Draghi’s report was published amid growing trade tensions between Brussels and Beijing.
Last month, Beijing announced an anti-dumping investigation into EU milk imports. A day earlier, the EU confirmed provisional tariffs of up to 36.3 percent on electric vehicles made in China.
The trade dispute is also taking place against the backdrop of broader geopolitical tensions. These concern China’s increasingly close relationships to Russia and the political status of Taiwana de facto autonomous island that Beijing claims as part of its territory.
[Bearbeitet von Martina Monti/Alice Taylor-Braçe/Kjeld Neubert]
