The European Union stands ready to flex its muscles to protect the bloc from China's aggressive trade practices, European Commission chief von der Leyen warned Monday following a three-way meeting with Macron and Xi.
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00:00The European Union will stand up to China's aggressive trade practices and protect its
00:07homegrown industries from being decimated. The warning came from Commission Chief Ursula
00:12von der Leyen following a meeting with Chinese President Xi Jinping alongside French President
00:17Emmanuel Macron. It is the clearest sign to date that Brussels is ready for a potential
00:22trade war with Beijing amid speculation the bloc is preparing trade tariffs against some
00:27Chinese products. We stand ready to make full use of our trade defence instruments
00:35if this is necessary. Europe cannot accept market distorting practices that could lead
00:42to de-industrialisation here at home. The Chinese government is propping up its manufacturing
00:49industry with subsidies and cheap loans for its domestic companies. The EU claims that
00:54an influx of inexpensive Chinese products is saturating its markets, preventing European
00:59industries from competing on an equal basis. These subsidised products such as the electric
01:08vehicles or for example steel are flooding the European market. At the same time, China
01:16continues to massively support its manufacturing sector and this combined with a domestic demand
01:23that is not increasing, the world cannot absorb China's surplus production. Brussels
01:32has reacted with anti-dumping inquiries into electric vehicles, solar panels and wind turbines,
01:39industries considered strategic and where the EU is losing its competitive edge.