Ursula von der Leyen, President of the European Commission, stated on Monday that while the EU aims to avoid economic dependence on China, it does not seek to fully “decouple” its economy from Beijing.
During her visit to U.S. President Joe Biden last week, von der Leyen emphasized that the European Union wants a fair and balanced economic relationship with China.
The joint statement between von der Leyen and Biden marked a small step toward resolving trans-Atlantic trade tensions, as the U.S. rallies allies to form a coalition against China.
EU member states are divided on their approach to China, with some wary of being pulled into a U.S.-led confrontation with Beijing.
Some Brussels officials privately expressed frustration that von der Leyen might have agreed to a statement, even a preliminary one, without consulting EU member states.
One official noted that, given the geopolitical implications, von der Leyen should have sought “a mandate” from the EU member states before making any commitments.
Von der Leyen clarified that Europe’s goal is to reduce its economic dependence on China without taking sides in global conflicts.
“For the European Union, it is important to de-risk — but not to ‘decouple’ — from China,” she stated in an interview with the European Newsroom project.
She explained that “de-risking” involves avoiding dependencies like those seen with Russia over fossil fuels and ensuring that Europe does not rely solely on China for critical raw materials.
To achieve this, the EU is diversifying its supply chains and working more closely with like-minded partners.
“We want a level playing field — fair access for our companies to the Chinese market, transparency about subsidies, and a strong commitment to respect intellectual property,” von der Leyen added.
Her visit to Washington enabled Brussels and the White House to show progress in addressing trans-Atlantic trade disputes, particularly those sparked by the U.S. green subsidy plans.
The Biden administration’s Inflation Reduction Act intends to invest heavily in promoting U.S.-based green technologies, aiming for “made in America” products.
EU businesses, however, fear they could lose market share, jobs, and even entire companies if the EU does not match U.S. subsidy efforts.
One tangible outcome of the trip was a U.S. offer to discuss exempting EU-produced rare minerals, such as those used in car batteries, from the “buy American” rules.
