The European Union is heading into a “phase of conflict” with Beijing unless it reaches a deal by the autumn to curb its widening trade deficit, European People's Party chairman Manfred Weber has told Euronews' flagship morning programme, Europe Today.
The EU's trade chief, Maroš Šefčovič, said on Monday that Brussels aims to reach an agreement with China by October to address trade imbalances, amid growing concern that Chinese industrial overcapacity is undercutting Europe's already struggling industries. Brussels is calling for tangible results as it readies new defence tools.
"We have to fundamentally change of our approach to China," he told Euronews. "We need a new level playing field where we clarify that subsidies cannot be part of a free market economy."
Europe is increasingly worried about a "China shock 2.0", with fears that Beijing's industrial overcapacity—from cheap consumer goods to electric vehicles —will undercut European manufacturers and threaten jobs through unfair competition.
"The Chinese must understand this (...) we cannot allow this," Weber said.
