An EU-China dialogue on digital matters has been postponed as tensions between the two sides threaten to boil over. The meeting, initially scheduled for June 23 in Beijing, will no longer take place, with no immediate date set for a follow-up, people familiar with the situation confirmed. The Financial Times reported that the talks had been abruptly cancelled by Beijing, along with a second meeting involving a senior EU official. Olof Skoog, Deputy Secretary General of the European External Action Service had been due to travel to Beijing this month to lay the ground for a potential visit by High Representative Kaja Kallas later this year. Skoog’s trip was intended as part of a series of preparatory visits that kicked off with top Asia official Erik Kurzweil last month.
A series of crucial EU meetings on China are planned this week that could set the EU on a more assertive policy path. On June 15, EU Foreign Ministers held a debate on China in Luxembourg while the 27 national leaders will debate it in the context of macro-economic imbalances in Brussels on June 18 and 19. The European Commission is trying to convince EU member states to back the more frequent use of emergency tariffs and quotas, known as safeguards, to counter what is seen as a damaging surge in Chinese imports. It also wants permission to develop a new tool to force companies to reduce reliance on Chinese suppliers, known as a “diversification instrument”.
The EU Parliament is also preparing new laws that would block certain Chinese companies from some hi-tech sectors and which would put stringent conditions on inward investments in key industries. In the Bundestag, German Chancellor Friedrich Merz signaled that he was on board with a more robust approach. “We will defend our interests and our industry against trade practices that lead to competitive distortions,” he said. “At the European Council we will speak about how we can expand our toolbox. The EU market is a sought-after market for exports from the entire world. We want to use this attractiveness to enforce rules for free and fair trade.”
At an event in Brussels, EU Director for Asia Trade Joanna Szychowska said “we expect that Beijing understands the economic and political strain caused by the effects of its policies”. “Because the trade surplus is not an abstract concept, it affects jobs, companies, industries and social cohesion,” she added. “Engagement remains our preference, but it must produce results – there is no doubt about that. So we are not turning inward, we are not abandoning open trade. But if it is needed, we will use our tools and we have a lot of tools to use not everyone likes.” The cancellations come despite Beijing calling for more dialogue to resolve the widening gaps and will undoubtedly be seen as a sign of its displeasure with how relations are unfolding, the South China Morning Post reports.
