- “You have the trade, dealing with trade and investment and with a long standing relationship with South Africa. Is is our main trade partner. In sub-Saharan Africa, we have an EPA that has been functioning with its success and also problems for for a number of years now. Um, this is what trade brings, uh, to to the table. But we have also the agenda, which is dealing with global gateways and has just put a very substantial package of 4.7 billion on the table, uh, for, uh, investments in South Africa. And a large, large part of that package relates to clean Uh, technologies. You also have growth. Who has the expertise and interest in a number of sectors, like for instance, critical raw material and clean technologies, energy and climate that have dialogues with South Africa and even even if it's not the Director-General of the Commission, the European Investment Bank, which is backing a number of investments in the countries, and who does have an influence on on the conditions in which those investments can take place. That is why, uh, there's been really an effort internally in the commission, uh, with, uh, the leadership of, of DG trade and DG impact in very working, very close together. There's been a real effort to try to to put in place this, this kind of a whole of government approach. And what we have done was, uh, launch work, uh, at the EU, Africa, South Africa summit in March. Uh, is at that point that that commissioner and President Ramaphosa.”
Sourcing of critical raw materials · EU policy on African region
- “We already have commitments for the implementation of the ratified ILO and environmental conventions in our Economic Partnership agreement. So here you have a case of complementarity, which I think is important. And our EBA also have what we call a nonaggression clause, which in other words says, you know, you cannot try to attract investment by lowering your labour or environmental rights. Uh, so we do have already that framework in place. That of course will apply as well to the investments that will be helped by the existence of a cap and in the cap. We will also propose to South Africa to cooperate on the promotion of environmental and social and government standards in the supply chains that we are going to cover. So the ESG standards is something that we will not forget. We actually don't forget they are part of our global gateways philosophy. They are part of the investments that are facilitated by the European Investment Bank. Again, these are cases where you can translate your objective not just by having a general obligation in a binding agreement, but by injecting them in the type of financing you are ready to do in a particular country. Um, there was also well, the question is, is this an MOU is not an MOU. Yes, this is an MOU. But but again, I repeat the point I was trying to make.”
Due diligence in supply chains (environmental and human rights) · EU policy on social & environmental impact of foreign investments
- “Thank you, Mr. Chair. And you're right. You're right. CTIP is a different instrument than the free trade agreements or other binding trade and investment agreements that that we are used to deal with. But this is so for a reason, which I'll try to explain to you now. And they are particularly needed at a time where we need to really be present in a number of third countries, which are key for our clean supply chains, in a manner that is different from what we have done before, does not replace the need for free trade agreements, but it can Complement them in a very pragmatic manner. And and again, I will get back to this. With a whole of government approach, and I don't say this lightly is extremely important and needed for the commission. But just recapping a little bit where we are, you know, the idea of the CPTPP is the clean trade and investment partnerships were put on the table by the president of the commission. Uh, she already president von der Leyen announced these type of initiatives in her political guidelines last summer and is one of the flagship policies that were announced by the commission as the external part of the clean industrial deal that we launched at the beginning of, of of this year. That is the genesis. And we've been engaging as from that point in trying to, put the concept in place, and South Africa was very clearly and quickly identified as the first country that we could test this project with. And by the way, uh, we have kept you and the council regularly informed in writing.”
Due diligence in supply chains (environmental and human rights) · Sourcing of critical raw materials
- “So I think you'll all agree. We are not here to facilitate the investment of poor countries in South Africa. It does make sense for us and for South Africa. I repeat, the one quality investment that we try to to do it in a different manner. Um, there were questions related to, uh, which of the countries. Uh, which of the countries will engage with? I think we are at the moment trying to put in place, uh, the CPTPP with South Africa and is our proof of concept if you want. Uh, we have heard from other countries with an interest in this type of approach, for instance, Vietnam, but there are others. But I think at this point, and because we have a relatively short period of time and a very, very good end point with a possible result for the G20 summit leader. We. We are fully concentrated in South Africa. Um. As regards the inclusion of references to Sasol, uh, and the site of Sasol in Secunda in the summit declaration, as I'm sure you know, summit declarations are the result of negotiations between two parties. Um, and as to your question, why was that mentioned there? It was extremely important for the South African government, but I will not take it as the South African government endorsing a company. Uh, the Secunda plant equates to 5% of GDP in South Africa, and I don't have the number in my head, but it also amounts to a high level of CO2 production.”
Asia-Pacific · EU policy on social & environmental impact of foreign investments
- “We are doing it because we need that type of engagement. We need to have a discussion when we have a European investor that was to participate in the unbundling of the electricity grid, to be able to ensure that that investor is going to be able to have a priority qualification, that There is something possible under the rules in South Africa to be considered a strategic integrated project, and that therefore is going to be facing far less barriers when trying to deploy the investment. The South Africans know this is important. The South Africans are making a big, big effort in what it is a challenging situation not only at central but also the provincial and municipal level. This, in our view, is what we need. It comes to complement an economic partnership agreement that we already have in place, and I think that it makes sense that it is being tested with a country with which we already have a framework in the form of a trade agreement. But again, it is not an attempt to cut corners. It's just the type of instruments we believe we need. If we want to leverage global gateways and facilitate investments in in South Africa. And that's why I think it's is important to think what is the instrument you need and then fight. As to the role of the European Parliament you want. Um, now, if, if, if I try to to take the different questions that I have been put on the table starting by on, on the type of trade and sustainable development clauses, that we will have all the respect of South Africa, in particular of environmental and labour conditions.”
EU policy on screening foreign investment in strategic sectors and critical infrastructure · EU policy on social & environmental impact of foreign investments
- “Uh, we send you knows, February, March, May. We have also updated, uh, your monitoring group on the new Sadc, EPA. Uh, and obviously the commission is is here to to keep you informed us as we advance. Now, what is it? As as I was saying just now, what we want is a complement to existing trade agreements or other types of trade relationships. It might be also on the basis of MFN tariffs we are looking into trade and An investment in the area of clean value chains. And we are looking at this from the point of view of our companies. What is it that our companies need when they go and invest in a third country, but also the third country? What is it that the third country needs, is looking for in terms of benefits from investments from third countries? And you could say, well, this should always be the case and I will agree. But it's even more the case now where we are dependent on inputs such as critical raw materials that exist in countries like South Africa and others that want to use those inputs, as well as a means to progress in their industrial policy. And you cannot criticise them for that. We just need to find a way in which our investments can benefit from the resources they have, while at the same time our investment also benefit them in their policies. Now, I was referring to the whole of government approach, and I think it is important to to explain why why it is so vital.”
Sourcing of critical raw materials · EU policy on social & environmental impact of foreign investments
- “So yes, discussions are there and we are trying to ensure that the measures China is taking now in reaction to the US tariffs do not affect us. Um, there was a question of how it feels when one is in Beijing these days. That's a difficult question to answer. Um, it's not a matter of feeling, you know, trade negotiations don't have feelings. Uh, we will have to see. We will have to see if the engagement, the positive engagement we saw two weeks ago, does them result in real, uh, and concrete outcomes. I think it's only at that point that we will be able to tell you how we feel about our discussions, uh, with China. And I would like to clarify that Commissioner Shevchuk did not fly directly from Washington to Beijing. He came to Brussels. He discussed and debriefed the college. And then only after that he flew, uh, to to China. Um, as regards questions related, and I think with that, I finish to, uh, labor standards and to environmental standards. These are issues that we always try to ensure compliance by the application of our own legislation. And that's why you have forced labor regulation, and that's why you have the other type of measures that we have put in place in the last Commission to ensure the respect of environmental standards. And I think with that, unless I have forgotten something, I have covered everything.”
Due diligence in supply chains (environmental and human rights) · Trade relations with China · EU policy on labour exploitation in global supply chains
- “Right. It was a long time. I have not been confronted with such a long list of questions in, in into, uh, which I think it, it does reflect, uh, a logical debate, which is what are we talking about? And let me just come back to insist on one thing. I'd like to separate the discussion about the role of the European Parliament. That is an institutional discussion. This is a negotiation you're having with my commissioner, and I do respect the position the Parliament takes. But this is different from the importance and the value in some instances of having a framework for cooperation that is not necessarily based on binding rules. And this is not, in my view, because it's easier or is faster or is more flexible. The commission is not doing this because of those reasons. We are doing this because we are putting on the table a very important amount of financing on the basis of global gateways, which is largely there are other parts that are not related to to clean value chains, like for instance, vaccines. But it's largely looking into clean value chains. We have a partner that wants to attract quality investments, and I say quality investments. I don't need to try to remind you which of the type of investments they they get, but they are interested in those investments. And at the same time, we need that partner to improve the framework in which those investments are going to take place. We are not doing this because it's faster.”
Due diligence in supply chains (environmental and human rights)
- “How much are you going to be using your supply chains in the country where you are investing how much employment you're going to be creating? That is part of the manner in which our investors function in South Africa. And it's not only because of the framework that South Africa has in place, including very, very specific and I would say important politically frameworks like the black Empowerment rules. But that is because they do realise that for their investments to be successful, they do have to engage with, uh, with those on the ground not only for employment creation, but increasingly as well in terms of a transfer of knowhow and a transfer of technology in a voluntary manner. So I think this is understood. The challenges remain the same and there are many I don't need to remind you which ones they are. I think they they are well understood by the government. Um, as regards the question from uh, uh, this year, from the front as regards linkage with global gateways, global gateways is self-standing. It has its own legal basis but is clearly part of the package, part of our discussions with South Africa. That's why you have inter and uh, and I call them into more than once in PA and DG trade uh, working uh working together. It also it makes no sense to continue doing something that we've done too often, which is to invest in other countries without really looking at whether those investments are producing a value not only for the country where we're investing, but also for our investors, which happen to be top of the league for many of the technologies and investments South Africa need.”
Sustainable corporate governance · EU policy on social & environmental impact of foreign investments
- “We are proposing a non-binding instrument. We do not need new binding rules at this stage. But please don't conclude that the absence of binding means absence of benefit. That would be a mistake. What we need is to make sure that we can work with the South African government, with the leverage that we have because of global gateways, to ensure that they work with us to lift barriers to trade and investment. And whereas the South African government is reticent to enter into big reform as they will refer to approaches. They are conscious of the need to facilitate investment, and they have space within the application of their laws to help lifting barriers. We are Focusing on four areas at the moment, but these are not close and they could advance a change or increase. We are looking into renewable energy and clean technologies. We are looking into the electricity transmission and the energy grid because there is a big opportunity there at the moment with the efforts that are being made to transform where it is not functioning. Big company overseeing the energy grid x.com into a real functioning, unbundled, uncompetitive organisation and the energy grid. Access to energy grid is one of the big challenges for all sorts of businesses in South Africa. We are looking into clean fuels, for instance green hydrogen. But but not only. And then of course we are looking into the raw materials value change.”
Sourcing of critical raw materials
- “Don't judge the usefulness of of the MOU on on the grounds of the role that currently the Parliament has. Um, now, um, Mr. Walbourne was asking, um, about the possibility to engage with South Africa on the WTO discussions on an extension of the current moratorium. That doesn't belong to a clean, clean trade and investment partnership. But in the context of the summit that we had with them, we continue to discuss a number of things. So we are not only discussing the CPTPP, for instance. We continue to discuss with them very, very actively the SPS problems, uh, barriers we find for our exports to South Africa in the context of the EPA. And we continue to discuss collaboration, uh, vis a vis the WTO and the moratorium. So that is not forgotten. It's just dealt with in in parallel. Um, uh, Mr. Bowman, you're absolutely right. Uh, it's a country with high expectations, high potential and high challenges, but that is as well what is helping us at the moment to engage with this government. They need to reduce poverty. They knew they need to reduce unemployment. Uh, they need to ensure there is an electricity grid that functions. They need to continue with the deployment of alternative means of production of energy. Uh, we can bring that. And when you speak to our investors, they understand perfectly well that they cannot come to South Africa without committing to South Africa. So the discussion for instance of local content requirement.”
Asia-Pacific
- “And there. South Africa in particular has a platinum metal groups. And those are very important for batteries in electric vehicles. And what we're trying is clearly to see how we can look at the opportunities in those sectors. The Global Gateway Fund, how they are also those funds leveraging private investment and how we can identify specific projects and push for for them. So if you want the the MoU will have the part that will look into investment. As I was saying, looking at what are we financing already, the finance and the global gateways, what kind of financing there is, what kind of opportunities there are. We will increase information in terms of access to public procurement access, as well to a specific private and private public investments. And then we will have a government to government mechanism to address specific trade and investment barriers and try to simplify administrative requirements. Could this type of discussions lead at some point to changes in legislation, to the realization that it will be good to get to binding rules on a specific sectors that remains open? Is not the manner in which we can engage with South Africa for the work at this moment? Frankly, is not what our companies are asking us for. What they're asking us for is to do exactly what we are trying to do. And I think that is also very important. The reality on the ground is that they are not asking for new rules. They are asking us to support and to make sure that our fact that we are the main investor and the main supporter of investment in South Africa in terms of global gateways, that it translates in a manner that it also is for the benefit not only of South Africa, but our businesses and Within the cap that we see as an umbrella.”
Sourcing of critical raw materials · EU policy on social & environmental impact of foreign investments
- “It is in dire need to. To change to. To decarbonise and is in an area in a province with a high, high level of unemployment and everything that comes with unemployment. So I cannot speak on behalf of the South African government, but I think that was behind their absolute push to have that specific reference, which I think you should read behind the particular province in the in the declaration. Um. As regards, um, whether it is, uh, a implementable agreement, whether we are going to be able to, to measure, uh, the type of commitments that we take with South Africa is going to be easy, uncomplicated. If it works, we will have Easier investments for our companies in South Africa to the benefit of South Africa and our companies, and we will have more integrated value chains in clean technology. We do need a number of the things that can be not not only extracted but produced in South Africa. And I think in the long term, the discussion, for instance, as regards battery is a very important one. I'm sure I have forgotten something. I have the very uncomfortable impression that I've forgotten your questions, Mr. Chair. Um, as regards the, um, yes. Regards the role of the Parliament. I think you understand. You understand what? I think the discussion is taking place.”
Sourcing of critical raw materials
- “Signalled clearly the intention to go towards a clean trade and investment partnership. And you, you could say, well why South Africa? Okay. Yes, South Africa has critical raw materials, but other countries have them. Um, the reasons in our mind are pretty clear, besides the fact that we have the Sadc, EPA in place since 2016. Uh, we are the biggest trade and investment partner in, in for South Africa in terms of trade flows. We have between 45 and 55 billion per year. We are the first investor in South Africa. And when we look at the presence of our companies between 2020 and 2025, there's been an increase of 18% of presence of European companies. We have now almost 1300. And a good number of them are coming from different member states in the area of clean technologies. Um, I think it's also fair to say, uh, South Africa shares common decarbonization objectives. It's not only that they are part of the Paris Agreement. They really do have a policy that is trying, within the constraint of difficulties, that the level of development and the challenges they have. Uh, I mean, but but they do really have a commitment towards a decarbonization. And then let's be very clear, we we do have an interest as well, because it's a key country in the global South and in the G20. And at the moment, we have a government that has more of a, uh, business friendly approach, uh, in the hope that this is going to work. Now, what is the we are proposing? What is it that we have been discussing internally and we have started only now to, to discuss with, with, uh, South Africa.”
Sourcing of critical raw materials
- “We are, if you want, hosting ongoing discussions, you know that you grow is, uh, discussing with South Africa an MOU on raw material value chains. And we do have as well, ongoing dialogues on energy and climate. Both of them are very important. In particular, when you think at the current situation in terms of, um, decarbonisation objectives by South Africa, but also challenges. So, uh, this is all part of the structure that we're trying to put in place, that we want it to be light and be based on a government government dialogue and also business to government dialogue. Um, what is it that we are doing besides that we are very concretely identifying the projects, the specific objectives of our industry. We are engaging now with South Africa. They are at an extremely busy moment because they are also hosting the G20. But the objective is to have a text of an MOU that is stable enough to be discussed at the margins of the trade and investment industry are meeting in October, the 10th of October and then get to a conclusion at the G20 summit in November on the 22 to the 23rd. And of course, as we advance, we will continue to regularly keep you informed.”
Sourcing of critical raw materials
- “We continue to face market access barriers not only to enter the market as an exporter, but also to enter the market as an investor and to try to operate once invested in the Chinese market. The discrimination and the uncertainties are a continuous problem there. When you put all these against the current situation, the shock waves that are at the moment affecting the whole of the international trading system, you will understand how important and timely the discussion and the visit was. And it was timely because despite all the problems we have, we need to recognize the significance of our relationship with China. We're talking about the second largest economy and our third largest trading partner, with total trade in goods with a value that reached $731 billion last year. It is also the source of critical inputs and critical resources for our economy. In some cases, inputs and resources that are not replaceable replaceable in a short term. But that does not prevent us from realizing that we do have a significant but also a very unbalanced relationship. We do often talk about the trade deficit we have with China. It did reach €304.5 billion in 2024. And our problem with the trade deficit with China is not the trade deficit per se. It's the fact that it is not a normal trade deficit because it is on the one hand.”
EU-China relations · Trade relations with China
- “That's the objective of the second one. And we are starting as well to look into very specific, uh, resilience criteria that we are implementing into our internal market legislation. And there are, for instance, I refer to the Net Zero Industry Act, the aim being that we diversify our imports in case of other dependencies from a single country. So, you know, in a nutshell, we continue to take risks and to defend our market. But at the same time, and as president von der Leyen said in Davos, we are ready to continue discussions and to engage where possible. And we believe that it will be in China's long term interest to more responsibly manage its economic imbalances. Scoping this possible engagement was precisely the purpose of the Commissioner Mission to China. And I will provide you with a debrief. Um, he met with the Chinese vice premier, with the minister of Commerce and with the Minister for customs. Uh, Sun May June and raise five main points in Beijing. The first one was the need to tackle long standing systemic issues, including Overcapacities and subsidisation, and the commissioner made clear that without resolution of these systemic concerns, the EU will remain committed to taking autonomous actions wherever necessary to defend our market. Second, he raised the need to address market access concerns that we have for many product groups, including brandy, agri food, cosmetics, high speed and urban trains, pharma, medical devices.”
EU-China relations · Trade relations with China · EU policy on screening foreign investment in strategic sectors and critical infrastructure
- “100% of the drug precursors that enter the EU and that are used to produce synthetic drugs come from China. And 80% of IPR infringements that are caught at the border are concerning products coming from China. So the issues need to be addressed. And finally, of course, the commissioner raised our concerns as regards China's support for the Russian war in Ukraine and the sanctions circumvention. Now, the overall assessment is that the mission was useful to chart a concrete pathway for a more result oriented engagement. The general tone of of the discussions were positive. And China committed to engage on a number of issues and to get to concrete deliverables. First of all, China agreed to release into duty free channels EU brandy, which was blocked at the border. This is a link to the ongoing problem we have because of, and in our view, unjustified anti-dumping investigation that China has launched. So the agreement to release at least those that are blocked and that were destined to duty free channels, that is something that was agreed to and that has been now officially announced, including the postponement as well of the, uh, defensive duties, uh, definitive defensive duties for an extra three months. So we'll have now until the 5th of July to try to find a solution to the situation. And China also committed to engage with us to work on concrete solutions related to a number of the market access issues that we raised with them, and for that to get into frequent and regular work at technical level and then oversight at political level.”
Trade relations with China · Intellectual property rights (IPR) · Regulation of drug precursors in the EU
- “And this is just a sample of those that were raised. And the commissioner made it very clear that we are now expecting the opening of the Chinese market in a meaningful manner. Third, there was a discussion as to the need to level the playing field of the European companies operating in China. We hear from our companies that we are not getting into a better environment, rather than the opposite seems to be the case. There is a growing sense of uncertainty and of ambiguity as to the application of the Chinese rules. In the case of some of the key aspects of the functioning of our businesses in China. A fourth commissioner also discussed a very important objective that has been now recently the subject of important policy discussions, which is the need to ensure that Chinese investments in Europe and in this case, he particularly spoke as regards investments in the EV supply chain, that these investments support long term competitiveness of our industry and the creation of quality jobs. And finally, he also explored the possibility of upgrading our customs cooperation agreement, and this is important. 91% of all e-commerce entering the EU comes from China. And we know that there are problems in a number of those goods that enter via e-commerce.”
Trade relations with China · EU policy on screening foreign investment in strategic sectors and critical infrastructure · EU policy on custom fee on non-EU imports
- “China has retaliated. There have been the latest announcements yesterday. It's difficult to see, uh, where this will stop. But we need to be closely monitoring whether the tariffs imposed by the US will lead to trade diversion of Chinese exports into the European market. This will not be sustainable and will make any constructive engagement between the US and China far more difficult. We need to take these risks seriously, but should also not jump to conclusions. So we will need to see what the effects are and if necessary, use the available tools we have within our Trade Defence Instruments toolbox to protect the single market and of course the producers and the consumers. So this is where we are now. I'm sure you have also heard that there was a phone call between president von der Leyen and China's President, Li Qian, this morning. You have seen that there was a discussion precisely on the need to track and address possible trade diversion, and that the president also insisted on structural solutions to rebalance the bilateral trade relationship and ensure a better access to the Chinese market. Of European business. So we're clearly into a very dynamic period, if I may put it that way, and we will make sure that we'll keep you closely informed.”
EU-China relations · Trade relations with China · EU-US trade relations
- “Thank you. Thank you, Mr. Chair, and thanks for all the questions. There are some overlaps. I'll try to regroup a little bit, but please let me know if. If I forget anything, which I hope I won't. Um, starting as regards the question on over capacities and whether the current problem, which is a very clear one and indeed is not only related to a still uh, it is affecting many other areas of both high end technology but also more basic products. Uh, how are we dealing with it? Uh, in particular, uh, in view of the fear that the actions taken by the US administration will, uh, will make that overcapacity grow because there will be more diversion of trade towards our market. Uh, we are very effective, for now, uh, using our trade defence measures. I know, there is an important discussion to be had as to whether we could be faster, and also whether we could be more horizontal in terms of, uh, the speed. Uh, I think we are to the maximum accelerating what we can do, uh, on the basis of trade, defence, uh, including safeguards. And this is really the most appropriate instrument to use. Uh, we are starting as well to, to discuss, uh, for instance, it's a discussion that comes in the context of, of steel, whether we need specific solutions for overcapacities in specific sectors. Uh, but but I, I would like to, to say that this is an issue where we have been paying, uh, a huge amount of, uh, attention and where we are reacting now very, very quickly, hence the reference to, uh, the need to put in place a mechanism to be able to detect very quickly any surges in imports coming from China or from any other country.”
Trade relations with China · EU policy on custom fee on non-EU imports
- “Our capacities exist in China, but exist depending on the sectors in some other countries as well. So to be able to identify surges that come as a result of the tariffs imposed by the US, um, on the issue of, of transfer of technology, and indeed is a very, um, interesting discussion for many years, as you know, China did request joint ventures, uh, transfer of technology, sometimes in a voluntary manner, many times in not a voluntary manner. Uh, it has sustained a lot of, uh, the industrial transformation that they have achieved over the past decades. And it is also the case that China now in a number of sectors, is a technological leader. So how can we ensure that there is also a transfer of technology for the benefit of our companies? There is a type of discussion that we should have in particular, when discussing the access China has to invest in the European internal market. And it is one of the issues that Commissioner Shevchuk put on the table of discussions with, uh, Trade Minister. Uh. Uh, we do want the Chinese investments leading to an improvement of the competitiveness of our companies. They were specifically talking about the value change of electric vehicles and batteries.”
Trade relations with China · EU policy on screening foreign investment in strategic sectors and critical infrastructure · EU policy on social & environmental impact of foreign investments
- “But you could translate this to other sectors. Uh, That requires investments that are not mere assembly plans, that are not mere investments with a view to avoid, uh, the final goods crossing the border and therefore to avoid tariffs. Um, this is something that we are looking into very seriously, and that we are ready to deploy the necessary instruments, if needed, to ensure that this happens. It will require a discussion with member States and with industry. Um, there's been several questions regarding the comprehensive agreement on investment. Our focus at the moment is to address the imbalances that we have with China in terms of the problems we have with their non-market policies and practices leading to overcapacity. The problems we have to access the market. The problem we have sometimes or many times is to make them abide by the rules, and that is where we are putting all of our efforts. So there is not a discussion about this. Resumption of discussions on key. This is not something that is part of the plans in so far as our engagement with China at the moment is concerned. And I do very much agree with the point that was made that we need to ensure unity amongst member states and have a unified position. This is something that is essential to try to maintain, as we have a very strong action and reaction to the measures taken by China.”
EU-China relations · Trade relations with China
- “Um, is always something that others will try to, to weaken. So we are aware of that. As regards advances, this was a question about these advances made for pork. We discussed pork. We discussed other agro industry sectors, including dairy. And we wanted to also challenge the measures that have been taken by China, which in our view, are of a retaliatory nature, by starting anti-dumping and anti-subsidy actions against those two sectors, imports coming from the European Union in those two sectors. This is something we are challenging, and it's something that we will continue to have an engagement and a discussion specifically now in the follow up to the visit of, of, of the commissioner. Um. I, I do think, but I don't think you will disagree. A strategic patient doesn't mean inaction on our side. Uh, we can deploy strategic patience when we need it, but we have proven not to be inactive. I was referring to the catalog of autonomous tools that we have put in place and started to use in the last few years, and that is something that we will continue to do. So we can engage with China, but we can continue to use our autonomous tools and ensure that we defend our interests and our internal market. One thing does not exclude the other. And as regards your not rhetorical question, but a very difficult one to reply as to will the actions taken by the US and the positioning of the US at this moment, at this point, make China a reliable partner.”
EU-China relations · Trade relations with China
- “Um, now, um, on on the, um, on the need to use our tools in, uh, within the rules that we have in WTO, we are of the view that the tools we are using are WTO compatible, and where there are disagreements, we are happy to discuss this in the WTO. That is something that we will not hesitate to do. We continue to be defenders of the system. At the same time, we are perfectly aware of the fact that the system requires reform. Among other things, we need a number of reforms in the rules and the disciplines to ensure that they catch a number of the behaviours. But by non market economies that now we find difficult to catch up. On the issue of cyber security standards and the position we are going to take, we are active in that area. This is a. Matter that is taken extremely seriously. It is under the responsibility of our colleagues in DG connect. And you have ongoing discussions and setting of standards with Anisa precisely to provide the right answer to questions related to connectivity. There was reference made to, uh, vehicles that are connected to the internet, but these are not the only issues where we have cyber security concerns and we do, when necessary, impose requirements to ensure that we are not vulnerable, including because of trade or investment coming from third countries that we think could be a concern for our cyber security.”
EU policy on screening foreign investment in strategic sectors and critical infrastructure
- “We are talking about the issues I was referring to and including agri food products such as beef, pork and poultry. The commissioner also agreed with Minister Wang to launch a comprehensive dialogue covering all trade and investment issues related to the electric vehicle supply chain. Here I come back to the issue of the competitiveness of our industry and investments in the European market. He also agreed with Customs Minister Sun to look into a potential roadmap for the revision of the 2004 EU China Customs Cooperation and Mutual Assistance Agreement. Now. So what next? I think we will be engaging now. We are already engaging at both technical and political levels. There will be two key parameters, in my view, to measure the evolution of our relationship from here. First, a lot will depend on whether China seriously engages on these issues and leads. This engagement leads to concrete outcomes. And second, and this is, uh, related to the overall situation we are going through. We need to see the reaction of China to the US reciprocal tariffs. This will be very crucial as well. Uh, you know, and you've been discussing, I'm sure, that the US has imposed an additional 34 blanket tariff on imports from China.”
Due diligence in supply chains (environmental and human rights) · Trade relations with China · EU policy on screening foreign investment in strategic sectors and critical infrastructure
- “Fuelled by the other capacities that I was just referring to, but also the problems. The barriers that we encounter when we try to enter and to operate their market. Um, and I think you will not be surprised if I remind you that, uh, on the EU trade defence side. So our tools to fight against dumping and illegal subsidisation and to protect ourselves when there are surges in in imports from third countries in the EU trade defence side, we do have at the moment 127, uh, actions out of the 206 we have in place that are in place to address problems directly or indirectly created by the China non-market policies and practices. We are talking about 60% of our TDI Measures. So thus the situation is not new. You know as well that we have been, over the last years, developing and updating our toolbox of autonomous measures to better address these specific problems related to the level playing field. On top of what you could talk or refer to as traditional trade defence instruments, we also have tools that are more recent. The International Procurement Instrument and the foreign subsidy regulations are the ones that come to mind. The first one, as you know, aims at ensuring reciprocity in the openness of procurement markets and to address distortions in the internal market costs caused by foreign subsidies.”
Trade relations with China · EU policy on custom fee on non-EU imports
- “Thank you, Mr. Chair. Uh, good afternoon, uh, dear members of the European Parliament. Um, I will indeed be providing you, uh, a state of play of our trade and investment relations with China in particular, in view of the, uh, visit Commissioner Jeffrey, uh, paid to the country, uh, a couple of weeks ago now, uh, this was, by the way, the first visit to China by a member of the college under the new commission and a very good opportunity for him to establish direct contacts with key interlocutors in the Chinese system, something that is extremely important, always even more at this point, uh, it was indeed a much needed engagement. Uh, we continue to witness an export based economic system in China that is creating problems for us. Uh, because of the industrial policies that China applies. And, uh, because of the overcapacities that result from such policies. And this is currently getting worsened, including because there is a very weak domestic demand in China. Uh, we see the exports, uh, of overcapacity completely upsetting the level playing field, not only in the European market, also in developing and emerging economies in third countries, third countries that are also our third country markets. So the effects hit us directly and indirectly. Uh, these are our capacities are also creating, uh, unwanted dependencies in a number of critical supply chains needed as well to to discuss our interest from an offensive point of view.”
EU-China relations · Due diligence in supply chains (environmental and human rights) · Trade relations with China
- “Um, as regards the question of whether there was a discussion on raw materials, uh, as you know, China does have a very, very strong role in, in the area not only of extraction but also processing of raw materials. We do have a critical dependency, See. And this is something that, uh. Well, first of all, we try to avoid it by diversifying. And that's why you see all the interests we have in a number of FTA negotiations and past FTA negotiations with countries from Chile in the past to Indonesia. And now it's also the idea behind some of the new initiatives, such as the idea of, uh, the clean trade and investment partnerships and the discussions we have started with South Africa. We need to diversify. But there was a discussion in the sense that, uh, we have made very clear to, to China, uh, that we will react if we feel that they are using our dependencies, uh, from critical from them in as regards critical raw materials, uh, they use their dependency, our dependencies by, for instance, imposing, uh, unjustified export controls. Uh, this is something that has been discussed very recently as well, because, as you may have seen, China has announced a further export. Controls for the latest one are seven new rare minerals that they have added in reaction to the last US tariffs in their export control catalogue.”
Trade relations with China · Sourcing of critical raw materials
- “My reply will be that you have to judge each partner by its own merits and not by comparison. So I hope I'm clear in what I am replying to. I will not read up more than is needed in the fact that there was indeed a meeting between the trade ministers of Japan, South Korea and China a couple of days after we were in China ourselves. Uh, this is, uh, something that is not new. Uh, we're talking about three economies in a region that is economically integrated. Uh, but there are deep differences between China and those two other countries, which, as you know as well, are close partners of ours. So that engagement in itself, uh, doesn't mean that, uh, there is going to be a specific, coordinated action. And thirdly, we have not seen any signals in that direction. And when you look at the readings of the meeting, uh, there is nothing that will, uh, give that impression in particular, if you read the readings of, uh, of South Korea and Japan and and stay in the region as regards Taiwan. Of course, we do not forget Taiwan and we continue to engage bilaterally, and we are extremely interested in the stability and the preservation of the status quo in the Strait. And as you know, we have now, over the last two years, gotten our engagement with Taiwan when talking about trade and economic matters at a higher level, at the level of director general on our side, and to cover issues that go beyond classical trade and investment, including so as to discuss economic security.”
Trade relations with China · Relations with Taiwan · Asia-Pacific