The European Commission said on Friday that the EU’s current trade and investment relationship with China is no longer sustainable, reflecting growing concern in Brussels over industrial competition and economic security.
The assessment followed an internal orientation debate among commissioners ahead of the G7 summit and the European Council meeting on June 18-19. Officials said the discussion would help shape future policy, although no major proposals are expected before the third quarter of the year.
The Commission reiterated that it would continue engaging with China while pursuing a strategy of “de-risking” rather than full economic decoupling.
“China is a critical partner, and engagement and dialogue will continue. At the same time the current state of the trade and investment relationship is not sustainable,” the Commission said in its official read-out of the meeting….
EU Commission Declares Trade Ties With China ‘Not Sustainable’
