China looks to boost EU imports, urges bloc to ease hi-tech export controls

China’s premier told the head of the European Commission that his country wants to import more products from the European Union that align with market demand, while urging the bloc to ease hi-tech export restrictions imposed on China.

Li Qiang made the comments on Tuesday during a meeting in Davos with European Commission President Ursula von der Leyen, as Beijing grapples with mounting trade disputes with Brussels.

It was their second exchange in more than a month after EU leaders travelled to Beijing in December for the China-EU summit where both sides agreed to work towards more stable and constructive ties.

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“China stands ready to import more products from the EU that align with market demand, and hopes the EU will relax export restrictions on hi-tech products to China,” Li was quoted as saying in a Chinese foreign ministry readout.

Li also said that he hoped the two sides could work together to push for more balanced development in bilateral trade, while noting that overall, China-EU ties had remained stable despite global changes and turbulence.

Li said deeper relations with the EU remained a diplomatic priority for China, and that Beijing was willing to work with the bloc to implement agreements reached in the December summit.

Over the past year, trade relations between Beijing and Brussels have been strained as both sides swapped accusations of protectionism and unfair competition. The bloc has also sought to rebalance transactions as its trade deficit with China neared €400 billion (US$434.2 billion).

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Last year, the EU opened anti-subsidy probes into Chinese electric vehicles and steel products imported from China, which could result in punitive tariffs being imposed.

Beijing recently countered with an anti-dumping investigation into brandy containers of less than 200 litres (352 pints) imported from the EU.

Li, without mentioning the trade friction, said Beijing would adhere to the norms of free trade, fair competition and open cooperation in the market economy together with the bloc, but cautioned the EU to be careful about its China trade practices.

“[China hopes] the EU will uphold justice, compliance and transparency in economic and trade matters, treat Chinese enterprises fairly, and prudently introduce restrictive economic and trade policies and deploy trade remedies,” Li said.

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In June, Brussels reaffirmed its comprehensive approach towards China, reducing its economic dependency by de-risking in critical sectors while leaving the door open for cooperation with Beijing in areas of common interest, such as climate change and global public health.

According to the Chinese readout, von der Leyen said the EU was ready to work with China to deepen cooperation on climate change and to promote people-to-people exchanges.

The European Commission president said on her X account that her meeting with Li was “good and frank”, adding that China and the bloc needed to take action on rebalancing trade and avoid distortive policies.

South China Morning Post