European Commission President Ursula von der Leyen said on Wednesday that the European Union would use all available tools to rebalance its trade relationship with China after its goods trade deficit with the country reached about 1 billion euros a day last year (about 1.15 billion dollars).
Trade imbalance and industrial pressures
In her State of the Union address to the European Parliament, von der Leyen described the trade deficit with China as unsustainable, saying the imbalance had reached a turning point as Europe faced pressure on its industrial sectors.
EU leaders had called on the Commission in June to deliver results from its talks with Beijing and ensure that the bloc had the tools needed to defend its interests, while EU Trade Commissioner Maros Sefcovic is seeking tangible results by October.
Agency for critical raw materials
Von der Leyen said cooperation was aimed at finding a solution that served both sides' interests, but stressed that the European Union was ready to use the available tools to rebalance the trade relationship.
She pointed to the European Union's dependence on China for a number of critical minerals, particularly rare earth elements, and announced that the bloc intended to establish a new European agency for critical raw materials to help secure member states' needs and build up stockpiles.
