European Commission President Ursula von der Leyen said that the European Commission will prepare a new law that would oblige EU companies to seek different sources of supply of key goods. At the same time, such a law may not be needed if businesses themselves begin to reduce the risks associated with China.
This is reported by Reuters reporters.
In particular, EU leaders agreed on Friday, June 19, at a meeting in Brussels that the European Commission should start negotiations with the bloc's main trading partners on problems in the global economy and trade. They also decided that the EU should assess whether new trade measures are needed.
Reuters writes that during the summit, China was actually the main topic, although it was not directly named in the final document. Von der Leyen explained that the European Commission is preparing measures to help businesses look for different sources of supply, because companies have been too slow to reduce such risks.
In addition, the situation worsened last year after China restricted exports of rare earth elements, using its leading role in the processing of critical minerals.
Von der Leyen explained that the best development of events would be if companies themselves reduced their dependence on risky supplies more quickly. Then additional measures from the European Commission might be unnecessary.
"We need to improve the situation. We have seen the numbers, they speak for themselves, and we need to restore balance in our relations," the head of the European Commission emphasized.
On Wednesday, the G7 countries announced their readiness to strengthen cooperation to reduce dependence on critical minerals. In response, China called on the G7 to adhere to the rules of a market economy and international trade, and not to act in a "small group" format.
EU diplomats note that a common position on the trade problem with China is gradually forming among the 27 countries of the bloc. The deficit in trade in goods with the PRC is now about EUR 1 billion, or USD 1.15 billion dollars, per day.
Against this background, the situation for the EU is complicated by transatlantic tariffs, which have limited access to the US market for European goods.
Meanwhile, the President of the European Council, António Costa, called interaction with China vital, while describing the trade deficit of EUR 1 billion per day as "simply unacceptable". He also stressed that the European Union cannot return to this problem every time and see no result.
"Unfortunately, China has not fulfilled its obligations so far," Costa said.
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