The EU is relieved by the easing of tensions in the trade dispute between the US and China. The deal could help in its own negotiations with Beijing. But in Brussels, one thing is also clear: the EU needs to become more independent.
Commission spokesman Olov Gill initially adopted a diplomatically reserved tone."The EU does not comment on trade negotiations with third countries," he told questioners inquiring about Brussels' view on the Trump-Xi deal. After a deep breath, however, he added a"but": "But in principle, the European Union naturally welcomes any development that removes barriers to global trade flows."
In Brussels, there is little concealed relief at the agreement – albeit one still unclear in its details – between US President Donald Trump and Chinese President Xi Jinping. For the EU, the deal is a good starting point for its own talks with Beijing, which are now beginning.
These negotiations with a high-ranking delegation of officials will also focus on trade in rare earth elements, EU spokesman Gill emphasized. China holds a virtual monopoly on this: In the modern world, no engine or screen can function without rare earth elements.
Warning despite relaxation
Despite the relief in Brussels over the easing of tensions in the trade conflict between the US and China, the German chair of the Internal Market Committee, Anna Cavazzini, warns against complacency.
Overall, we must say that we as the European Union need to be very careful: We cannot afford to be swept away in this triangle of Trump, Xi, and the EU. Anna Cavazzini
Cavazzini argues that by no means all problems have been solved for the European Union. The example of rare earth elements clearly demonstrates that Trump negotiated a deal for the US, but the European Union continues to suffer the consequences.
"With all the other tariffs that Trump has introduced, Chinese products are being diverted to the European market, and that's hurting our economy. We as the European Union must not just act as an appendage of the US, but pursue a much more independent policy," says Cavazzini. She adds that Europe urgently needs to develop strategies, particularly regarding rare earth elements, to become less dependent on China.
Dispute over chip manufacturer Nexperia
The appeal from the chairman of the trade committee, Bernd Lange, goes in a similar direction – with regard to computer chips, the second major point of contention between Europe and China. He says:"We see that there is also room for maneuver on the issue of semiconductors, of chips. We must seize this opportunity now. We must achieve greater technological independence in Europe."
But first, the EU talks with Beijing need to extinguish a current fire – the dispute over the chip manufacturer Nexperia, which is causing Europe's car and machine manufacturers to fear for their production due to China's supply stoppage.
Lange sees good chances that the sanctions pause for Chinese state-owned enterprises, apparently agreed upon between the US and Beijing, will also lead to a quick resolution of the Nexperia conflict."And this will ultimately make semiconductor production easier again – especially for the German automotive industry, but also for many industries in the mechanical engineering sector." Overall, Lange says, it is an important signal that a further escalation of the trade conflict between the US and China has been averted.
