France, Spain and Italy, along with the Netherlands and Lithuania, submitted a proposal calling on the European Commission to take protectionist steps, including imposing fees and restrictions on Chinese imports, with the aim of reducing the trade deficit, which amounts to about 360 billion euros annually.
French Trade Minister Nicolas Fourisset said: “A group of factors is pushing European countries more than ever to unify their efforts and formulate a common strategic policy, especially in the field of trade.”
On the other hand, Germany, the largest economy in the European Union, has not officially joined the proposal yet, despite its willingness to discuss it, given the dependence of major companies such as BASF, Siemens Energy, and Thyssenkrupp on the Chinese market, with a gradual decline in this dependence in recent years.
German Economy Minister Katharina Reich, known for her support of the business sector, is scheduled to visit China this week, accompanied by a delegation of companies, amid expectations that the visit will focus on strengthening cooperation rather than escalation.
The chief economist at the Center for European Reform, Sander Tordauer, warned that ignoring these tensions could put Germany in a weak position vis-à-vis Chinese diplomacy, according to what was reported by the Financial Times.
The European proposal also discusses establishing a “flexibility” mechanism, with the aim of obligating companies in sensitive sectors to diversify their supply chains and reduce dependence on China.
The European Commission is expected to discuss these trends during a meeting dedicated to the Chinese file on Friday.
In a related context, the European Union is preparing to take a decision regarding the allocation of the 2GHz band used in satellite services, with a tendency to favor European companies at the expense of American competitors such as Viasat, EchoStar, and perhaps SpaceX’s Starlink.
A European official confirmed that “this strategic spectrum is extremely important for military and commercial uses, and we seek to enhance the maximum levels of European industrialization.” (Arm News)
