Earlier this week, a spokesman for China’s Foreign Ministry said that it is in the common interest of China and Europe to settle differences through dialogue and consultation on the basis of mutual respect. The EU’s implementation of trade protectionism on the grounds of unfounded security concerns is detrimental to the interests of both China and Europe.
In June last year, European Commission President Ursula von der Leyen issued the Economic Security Strategy, aiming at strengthening the EU’s economic security by "removing risks" from "countries of concern". A year later, she did not expect that the major member States of the European Union began to question its feasibility, making this strategy a political hot potato.
Although China is not mentioned in the Economic Security Strategy, it is generally believed that Ursula von der Leyen is trying to bring the EU closer to the United States and reduce its dependence on China. Previously, Ursula von der Leyen regarded China as a "systemic competitor" of the European Union. In order to strengthen the economic security of the EU, the strategy proposes to further tighten foreign investment in the EU’s key infrastructure, and coordinate and control the export of high-tech industries such as semiconductors and artificial intelligence to "competitors".
From formulation to implementation, the strategy will take three years, or it will have a negative impact on trade, investment, scientific research and innovation. According to many reports quoted by diplomats, among the 27 member States of the European Union, only Lithuania has expressed its full support for the strategy and will review overseas investment.
This strategy has also been opposed by other industries. According to reports, in a written opinion submitted to the European Commission, the German Federation of Industries said that the EU’s practice may "seriously interfere with corporate decision-making and international capital flows" and said that it "opposes any mechanism intended to control foreign direct investment".
Similarly, SEMI, a global trade association representing the supply chain of electronic manufacturing, said in a submission: "It is not the right way to ensure economic security to control the foreign investment of European enterprises by the state, because this will seriously interfere with the business decision-making and investment flow of enterprises."
Last year, the United States began to restrict American companies from investing in high-tech fields such as computer chips and artificial intelligence in China. The EU attempts to follow the US line of containing China in the economic and high-tech fields, or it will further undermine the rules-based international economic order and accelerate the trend of de-globalization. All these run counter to the economic interests of the EU.
In recent months, the European Union has taken a series of trade protection measures against China’s electric vehicle and solar panel manufacturers, and abused the concept of economic security, which will shake the confidence of enterprises in China and other countries in the European business environment.
Although there have been remarks such as "decoupling" and "removing risks", China-EU trade has maintained a growth momentum in recent years due to the complementary economies of both sides. China and the European Union are important parts of the global industrial chain and supply chain, and they are firm forces to promote the construction of an open world economy. China has never brought economic risks to the EU. On the contrary, China has always been a trusted trading partner of the EU.
The two sides should resolve their differences through dialogue, not confrontation. The EU should abide by the basic norms of market economy, support free trade and fair competition, and avoid further damaging the mutually beneficial and win-win economic and trade cooperation between China and the EU.
This article was compiled from the August 1st editorial of The China Journal.
Original title: EU Economic Security Plan Failures to Find Favor Among Skeptical Block Members
Produced by: China Daily Editorial Office, China Daily Chinese Network.
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