European Commission President Ursula von der Leyen engaged in discussions with China’s Premier Li Qiang regarding the potential oversupply of inexpensive Chinese goods to the EU, a concern heightened by newly imposed U.S. tariffs disrupting global trade.
In a statement following their phone call, the Commission highlighted von der Leyen’s emphasis on the importance of stability and predictability for the global economy. She also underscored the shared responsibility of Europe and China, as two of the world’s largest markets, to uphold a reformed trading system that is free, fair, and based on a level playing field. Von der Leyen advocated for a negotiated resolution to the situation, stressing the need to avoid further escalation.
The EU is grappling with the impact of fresh U.S. tariffs, including those on steel and aluminum imports that took effect last month and additional tariffs on global automotive imports introduced last week. These measures have led to reciprocal tariffs of 20% on all exported goods from the EU.
EU policymakers are increasingly concerned that the new tariff landscape might prompt countries like China to redirect surplus goods to Europe, where tariffs are comparatively lower, potentially triggering a surge in low-cost imports. Officials have pointed out that China’s manufacturing policies already contribute to overcapacity, creating ripple effects for trading partners.
Von der Leyen emphasized China’s role in addressing trade diversions caused by tariffs, particularly in sectors already affected by global overcapacity. She proposed establishing a mechanism to monitor and manage trade diversions effectively.
