BRUSSELS — Belgium’s foreign minister has urged the European Union to take decisive measures to shield vital industries, including chemicals and pharmaceuticals, from the threat posed by Chinese oversupply. This call for action comes despite the potential for short-term retaliation from Beijing, as highlighted in an interview with POLITICO.
Urgent need for protective action
Maxime Prévot emphasized the necessity of prioritizing sectors such as metals, automotive, and critical minerals, which he believes require immediate intervention. He stated, “We need to prioritize the sectors where we can act quickly and effectively. And accept that we don’t necessarily need to provide exhaustive, universal protection down to the last detail for every type of production.” This perspective showcases Belgium’s increasing advocacy for a more robust stance against Chinese competition, as it becomes one of the more vocal proponents for EU industry protection.
The urgency of Prévot’s plea is underscored by the significant bilateral trade deficit, which escalated to €360 billion in the previous year. This deficit reflects a surge in European imports from China, coupled with a decline in exports, leading to substantial production cuts and job losses in once-thriving sectors.
A strategic approach to EU-China relations
Prévot’s remarks align with a letter sent by Belgian Prime Minister Bart De Wever to Commission President Ursula von der Leyen earlier this year, where he urged for the development of a “strategic China plan” to counter what he perceives as a “systemic threat” to the European economy. Following a five-day diplomatic visit to China, where he engaged with Vice Premier He Lifeng and Foreign Minister Wang Yi, Prévot expressed that EU measures would not be intended to target China directly but rather to bolster the EU’s own industries.
As Brussels prepares for a comprehensive reassessment of its China policy, discussions are set to take place at the end of the month, followed by a summit among European leaders on June 18-19. Prévot acknowledged the likelihood of retaliatory measures from China in response to any new initiatives but stressed the importance of initially pursuing a dialogue-based partnership with Chinese leadership.
He posed a crucial question: “Is Europe prepared to endure some temporary hardship for a few years in order to stand firm behind a series of measures designed to eventually reestablish a partnership based on a level playing field?”
Relations between the EU and China have soured significantly, with Brussels noting a lack of engagement from Beijing regarding issues such as public procurement and unfair subsidies raised in previous discussions. Senior Chinese officials recently signaled their readiness to respond vigorously if the EU enacts legislation that could restrict Chinese firms from participating in public contracts or contributing to critical EU infrastructure.
The proposed Industrial Accelerator Act, which aims to favor EU domestic firms and “trusted partners” in public procurement, has particularly irked Beijing, as China does not fall within this category. Additionally, the EU’s draft Cybersecurity Act, which seeks to exclude Huawei from telecom supply chains, has further strained relations.
Prévot concluded by asserting the necessity of a cohesive and united EU strategy to effectively tackle technological and industrial challenges, noting, “The European Union will only be able to respond to technological and industrial showdowns by standing united behind a strategy that is as widely shared as possible.” He underscored the urgency of this approach, stating that the luxury of disorganization is no longer viable, as every passing month compounds the need for accelerated economic development.