The key facts
- Merz: the EU does not want a trade war with China, but is opening a trade defence 'toolbox'
- Instruments are being prepared on a Franco-German initiative against market-distorting practices
- The EU does not intend to close its market to Chinese goods, but demands equal conditions
Merz on trade relations with China
German Chancellor Friedrich Merz said on Wednesday at the Berlin Global Dialogue conference that Europe does not seek a trade war with China, but is determined to defend its industry against unfair practices. He stressed that the EU must respond to the large trade deficit with China, and noted that, on a Franco-German initiative, officials are preparing trade defence instruments aimed at market-distorting practices.
'Toolbox' and dialogue
'This is not the start of a war, a trade war with China. We are looking for peaceful solutions,' Merz stressed. According to him, Europe will keep a set of instruments at the ready while continuing to seek solutions to problems with China through dialogue. 'We are opening the toolbox. We are showing the toolbox. But we do not want to use it,' the chancellor said, adding that dialogue with China has already begun and has become deeper than ever.
Competitiveness and equal conditions
Criticising certain Chinese trade practices, Merz emphasised that European and German industry must also strengthen its own competitiveness. 'We must do our homework. We are far from being competitive enough in the face of these global challenges,' he noted. According to the chancellor, Europe does not intend to close its market to Chinese companies and goods, but demands fair trade on equal terms.
