German MEP Bernd Lange criticizes the EU's October deadline for trade talks with China, calling it unrealistic for achieving a binding agreement.
German MEP Bernd Lange, chairman of the European Parliament's trade committee, stated that the October deadline set by the European Commission to achieve tangible results in trade talks with China is 'not realistic at all' if the EU aims for a binding agreement, as reported by Lyons' Euronews.
The EU is under pressure from a EUR1 billion (US$1.14 billion) per day trade deficit with China, which threatens jobs across the bloc. Negotiations began last week, with Trade Commissioner Maros Sefcovic setting October as a target for progress. However, Mr. Lange indicated that only a framework could be agreed upon by then, not a legal text.
He urged Brussels to prioritize addressing unfair subsidies, noting that approximately 4.5 percent of China's GDP is allocated to subsidies that distort competition. He mentioned that investigations are ongoing but emphasized that a broader solution is necessary.
European industries have reported an increase in cases of dumping and subsidies, with the steel sector alone prompting 80 EU measures against Chinese imports. However, the bloc's leverage is constrained by its dependence on rare earths, which are vital for green technology, automotive, and defense sectors.
China restricted rare earth exports during its trade war with the US, leading to shortages in Europe. Mr. Lange acknowledged that the current licensing system is an improvement over previous arrangements and downplayed the threat. However, he added that Europe must swiftly find alternative suppliers, as processing capacity has shifted to China.
