The European Union must avoid a harmful decoupling of global trade as it considers tariffs on Chinese electric cars and other products, the bloc’s economic chief said on Wednesday.
European Commissioner for the Economy Paolo Gentiloni told CNBC’s Silvia Amaro: “As far as Europe is concerned, I think we need a more mature attitude towards ensuring trade, economic security…especially towards China.” he said.
Gentiloni cited the EU’s ongoing anti-subsidy investigations into the EV market and wind turbines to address concerns that China is dominating global markets in green energy products.
Gentiloni said the research is a way to understand whether the subsidies provided by the Chinese government to domestic companies “are hindering opportunities for European companies.”
“But this does not lead us to a theory of global trade decoupling, which would be disastrous for both parts of the decoupling,” he said.
“The characteristics of the EU economy are that it is more open, more influenced by trade and less influenced only by domestic consumption. This is the reason, the economic reason, keeping the trade doors open is the This is a profitable reason.”Open. “
The United States on Tuesday announced significant tariff increases on $18 billion worth of Chinese imports, including electric vehicles and the lithium-ion batteries, solar cells, steel and aluminum used in them.
China insists its EV market is growing through innovation rather than state subsidies, and the US anti-inflation law, which has also raised protectionist concerns among EU officials, including Gentrioni, It claims to be providing subsidies to manufacturing industries.
Meanwhile, several EU countries are nervous that China’s retaliatory trade measures could hurt key industries at home, from German cars to French cognac.
This comes as the bloc looks set to recover from years of weak economic growth and a shallow recession in late 2023.
Gentiloni on Wednesday struck an upbeat tone about the outlook for this year after a “very, very difficult 2023” marked by economic stagnation, rising savings levels and uncertainty due to the ongoing Russia-Ukraine war. Indicated.
“Activity is gradually accelerating and the main driver will be consumer spending. At the same time, there are two other factors that are very positive,” he told CNBC.
“Inflation is certainly coming down. And employment remains high, very high, and will continue to rise in the coming months.”
