UN Commission: The European Union will use all available tools to rebalance trade relations with China

Brussels, 16 Sep (KUNA) -- European Commission President Ursula von der Leyen confirmed on Wednesday that the European Union will use all available tools to rebalance its trade relations with China, warning that the trade deficit with Beijing has reached a "tipping point."

In her annual State of the Union address before the European Parliament in Strasbourg, France, von der Leyen stated that the EU's trade deficit with China reached approximately one billion euros (1.1 billion dollars) per day last year, describing the situation as having reached a "tipping point."

She added that what is known as the "second Chinese shock" has already become a reality, noting that Europe is beginning to feel its repercussions through a decline in manufacturing.

Von der Leyen emphasized that it is in the interest of both sides to work together to find solutions to existing trade issues, stressing the need for trade talks between the EU and China to yield tangible results.

She highlighted the EU's dependence on China for several critical raw materials, particularly rare earth elements, and underscored the urgent need to secure supplies of these materials and boost stockpiles.

In this context, she announced that the EU will work to establish a new European institution specialized in critical raw materials to help the 27 member states secure their needs for these materials and store them.

EU leaders had called on the European Commission in June last year to achieve tangible results from dialogue with China and ensure the EU possesses all necessary tools to defend its interests, as European Trade Commissioner Maros Sefcovic leads negotiations aimed at making progress on this file by next October. (End) ARN/MNF