These days, trade wars have become commonplace. Fearing the growing reliance on China, the EU has decided to lower the presence of Chinese companies in European markets. The fact is that countries are trying to prevent overseas companies from taking a bigger advantage in markets. Oftentimes they use sanctions as economic as well as political leverage. For this reason, the EU is aimed at reducing risks when it comes to trade reliance.
Italian lawmakers were the first who pointed to that problem. Prime Minister Giorgia Meloni called for extra support for domestic companies to boost their market competitiveness. This move will help the country avoid dependence on China. The trade turnover between the European Union and China keeps growing. It means that soon Chinese companies will enter all the sectors of the European economy. Meloni believes that despite the fact that both parties are benefiting from trade, China is more competitive. Hence, trade relations should be built on certain standards that could help reduce reliance. Meloni brought up this issue at the recent EU summit in Brussels.
European Commission President Ursula von der Leyen also called on the EU states to "tighten its trade policy towards China." She noted that European countries need to adopt a strategy due to certain risks. However, not all EU states are ready to follow suit. Some EU countries, including Germany and France, are reluctant to limit business ties with China despite pressure from the US.
