European Commission President Ursula von der Leyen said the European Union is preparing to confront China over trade practices she described as rigged.
This shift in strategy signals a more aggressive posture from Brussels to protect domestic industries from unfair competition and the ripple effects of U.S. tariffs. The tension reflects a growing divide between the EU's desire for economic stability and its need to curb Chinese market dominance.
Speaking at the European Parliament in Brussels on July 8, 2024 [1], von der Leyen said that trade with China is explicitly rigged [1]. She said the EU must protect its key industries from these practices to ensure long-term economic viability.
Despite the sharp rhetoric, von der Leyen also indicated a willingness to engage in diplomacy. She said the EU is offering a negotiated resolution to the widespread disruption caused by the U.S. tariffs [2]. This dual approach seeks to balance a hawkish stance on trade fairness with a pragmatic need to avoid a full-scale trade war.
Von der Leyen has held meetings in Brussels with Chinese leaders, including Li Qiang and Xi Jinping, to discuss these tensions [2]. However, she has shut down discussions regarding a complete diplomatic reset with Beijing [2].
Analysts suggest that the relationship between the two powers will remain strained for the foreseeable future. Some reports indicate that the EU-China relationship could look rocky for five years following her re-election [3]. Von der Leyen said EU-China ties have reached an inflection point [4].
“Trade with China is explicitly rigged.”
The European Commission is attempting a 'de-risking' strategy that combines aggressive protectionism with targeted diplomacy. By labeling the trade relationship as 'rigged,' the EU provides the political justification for tariffs and trade barriers, while the offer of a 'negotiated resolution' prevents a total collapse of diplomatic channels with China.
