‘On This Point, Donald Is Right,’ Says EU Chief As She Slams China’s Trade Practices At G7, Urges Trump To Join Forces – Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL)
Ursula von der Leyen, the President of the European Commission, has criticized China for its export restrictions on vital raw materials used in the production of cars, batteries, and wind turbines. The move, she says, is disrupting global trade and undermining competition.
What Happened: Von der Leyen, during a session on the global economy at the G7 summit in Kananaskis, Canada, on Monday, condemned China for using subsidies to bolster its companies, Politico reported. She accused China of “weaponizing” its dominant position in the production and refining of critical raw materials and flouting global trade regulations to undercut rivals.
Since April, China has sharply reduced exports of permanent magnets and the critical minerals needed to manufacture them. This action—retaliation against tariffs introduced by U.S. President Donald Trump—has had far-reaching consequences, affecting not just the U.S. but also Europe.
“On this point, Donald is right — there is a serious problem,” stated Von der Leyen as she urged Trump to collaborate with allies to address China’s trade imbalances rather than imposing tariffs on them. She also warned of a “new China shock,” accusing Beijing of saturating global markets with low-cost, state-backed goods and urged G7 nations to confront its growing dominance in the raw materials industry.
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Why It Matters: The EU’s stance on China’s trade practices is a significant shift from its previous position. In April, there were concerns that China might exploit the strained U.S.-EU relations to its advantage. However, the EU’s strong stance against China’s trade practices suggests a potential alignment with the U.S. on this issue.
Trump’s trade war with China has also strained U.S.-EU relations. In May, Trump referred to the European Union as “nastier than China,” asserting that the U.S. holds the upper hand in trade agreements with the EU. This statement came just days after he had praised von der Leyen as “fantastic.”
The EU has also taken a firm stance in its trade negotiations with the U.S. In April, von der Leyen threatened to impose levies on U.S. tech giants such as Meta Platforms META and Alphabet GOOG GOOGL if the ongoing tariff negotiations with the Trump administration failed to be resolved. This firm stance by the EU, coupled with its current position on China’s trade practices, suggests a significant shift in global trade dynamics.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
