China says it is not ‘root cause’ of EU’s economic woes after trade talks

BEIJING, June 30 — China’s foreign ministry said today that the country is not the “root cause” of issues facing the European Union’s economy, following talks in Brussels aimed at avoiding a damaging trade war.

China’s large — and growing — trade surplus with the 27-nation bloc has increasingly raised concerns across Europe, putting pressure on Brussels to protect local industries.

After talks on Monday with visiting Chinese Commerce Minister Wang Wentao, EU trade commissioner Maros Sefcovic issued a stark message that “the status quo is not an option”.

Asked about the discussions today, a spokesman for Beijing’s foreign ministry said that “China and the European Union are partners, not rivals”.

“The root causes of the issues facing the European Union do not lie with China,” Guo Jiakun told a regular news conference.

“The key to resolving economic and trade issues between the two sides lies in deepening cooperations and achieving common development,” he said.

He added that China was ready to “strengthen communication and consultation with the EU side (and) properly handle trade differences in a constructive manner”.

Sefcovic and Wang plan to meet again in October in China.

Brussels fears it will lose certain industries entirely if it does not act against a glut of inexpensive goods made in China threatening manufacturers in Europe.

Europe insists on the need for a level playing field, pointing out that Chinese firms have an unfair advantage because of massive state subsidies.

Apart from the trade imbalance, other issues include Beijing’s stringent export controls on rare earth elements essential to the modern economy, introduced last year. — AFP