China's trade tactics under fire as Brussels sounds alarm

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China’s trade tactics under fire as Brussels sounds alarm

11-07-2025 13:32

China’s trade tactics under fire as Brussels sounds alarm

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China’s trade tactics under fire as Brussels sounds alarm

Just two days ahead of a crucial EU-China summit, European Commission President Ursula von der Leyen abandoned diplomatic restraint and laid her cards on the table. In a strikingly direct statement, she criticized Beijing’s economic model and made it clear that Europe is no longer taking a soft approach.

Von der Leyen accused China of first pouring massive investments into future-defining technologies and then flooding global markets with subsidized products to squeeze out the competition. The formula was simple: low prices, high volume, and a relentless push. While the West was preoccupied elsewhere, China built dominance, leaving a trail of shuttered factories and declining industries across Europe in its wake.

A particular focus was placed on Chinese solar panels and rare earth processing. Von der Leyen pointed out that “Made in China” products enjoy an automatic 20% price advantage in tenders. That is not the result of fair market dynamics, but a sign that the system is rigged. In her words, this is not just uncompetitive, it is fundamentally unjust.

Her tone echoed rhetoric once reserved for Donald Trump’s trade tirades, though this time it came from Brussels, clad in a power suit and armed with the language of institutional reform.

Von der Leyen emphasized that the EU remains open to cooperation but wants to restore balance. In other words, this could mean fewer cheap Chinese imports and more access to China’s domestic market. And ideally, fewer state-backed monopolies.

Back in April, Von der Leyen reminded both sides that the EU and China are two of the largest players in the global economy, and with that size comes shared responsibility. World trade, she stresses, must not become a one-sided game dictated by a single rulebook.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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