Key facts
- Bernd Lange, chair of the European Parliament's trade committee, believes the October deadline for trade talks with China is unrealistic.
- Lange stated that achieving a binding agreement by October is not feasible.
- He identified China's industrial subsidies as a top priority for the EU.
- Lange noted that approximately 4.5% of China's GDP is allocated to subsidies, which he described as unfair competition.
- The EU is facing a significant trade deficit with China, impacting jobs and industries.
Bernd Lange, the head of the European Parliament's trade committee, has stated that the October deadline set by the European Commission for achieving "tangible results" in trade negotiations with China is "not realistic at all" if the EU aims for a binding agreement. Lange, a German MEP, emphasized that while discussions are ongoing, establishing a framework for main points and then negotiating a dedicated legal text by October is an unachievable goal.
The European Union is grappling with a substantial trade deficit with China, estimated at €1 billion per day, which poses a threat to hundreds of thousands of jobs across the bloc. The EU seeks to rebalance this trade relationship through negotiation, but tensions are high, with China warning of retaliation against any protectionist measures.
Lange highlighted that restoring a level playing field is a top priority, citing China's extensive subsidies for exported products. He noted that approximately 4.5% of China's GDP is used for subsidies, creating an unfair competitive advantage. The EU executive has already implemented 80 measures against low-cost Chinese imports, particularly in the steel sector.
However, the EU's leverage is constrained by its dependence on China for rare earths, crucial for green technology and automotive manufacturing. Lange downplayed recent export restrictions, attributing them to the trade war with the US, and stated that while licensing systems are not optimal, they have improved. He acknowledged that the EU's reliance on China for rare earth processing is a result of European companies moving operations to China for lower costs, stressing the need to quickly find alternative suppliers for processing and refining.