EU Pres. Calls For Balanced Relations With China Based On Reciprocity

(MENAFN- Kuwait News Agency (KUNA)) DAVOS, SWITZERLAND, Jan 21 (KUNA) -- The European Commission President Ursula von der Leyen called for reviewing ties with China for a more balanced and fair relationship with China reliant on reciprocity, especially considering current challenges.
Speaking at the opening of the annual World Economic Forum in Davos, Von Der Leyen reflected on China's accession to the World Trade Organization 25 years ago which she described as the start of the so-called "China shock" caused by rising Chinese exports and added that the world is witnessing today a "second China shock" driven by state-subsidized overcapacity.
She cited defensive trade measures being implemented globally including in the Global South as a reaction to such market disruptions, highlighting the EU's recent actions against Chinese products such as electric vehicles as part of these efforts.
Von Der Leyen also emphasized the importance of continuing dialogue with China stating "It is in China's long-term interest to take on more responsibility for addressing economic imbalances."
She reiterated the EU's readiness to seek mutual benefits in negotiations despite economic risks.
She also pointed to the 50th anniversary of EU-China diplomatic relations this year as an opportunity to deepen cooperation and expand trade and investment ties, provided they are grounded in fairness and mutual respect.
Von der Leyen also underscored the importance of transatlantic relations describing the EU's partnership with the United States as one of unparalleled economic integration.
She noted that trade between the two amounts to EUR 1.5 trillion annually representing 30 percent of global trade.
"European companies employ 3.5 million people in the U.S. while one million U.S. jobs directly depend on trade with Europe" she said adding that the EU also relies on the U.S. for more than half of its liquefied natural gas supplies.
She reaffirmed her commitment to "early engagement" with Washington on shared interests while protecting EU values and priorities.
Von der Leyen said that with the rapid changes in the global economic landscape Europe should adapt to maintain its growth and competitiveness.
She announced a five-year roadmap the "Competitiveness Compass" which focuses on increasing financial liquidity, reducing bureaucracy, enhancing innovation and supporting clean energy projects.
"Europe is not lacking in capital but in an effective capital market to convert savings into private investments," she said.
To address this she revealed plans for a European Union Savings and Investment Fund designed to ensure smoother capital flows and boost investment in emerging technologies.
Von der Leyen highlighted the EU's efforts to reduce its dependence on Russian fossil fuels noting a 75 percent reduction in Russian gas imports since the start of the military operation in Ukraine.
She stressed the importance of diversifying energy supplies, expanding renewable energy sources, and increasing investments in clean energy technology.
In her remarks Von Der Leyen praised the ceasefire agreement in Gaza facilitated by Egypt, Qatar and the United States and reiterated the EU's commitment to supporting peace efforts in the region.
She also reaffirmed the EU's steadfast support for Ukraine stating, "Europe will stand by Ukraine for as long as it takes."
She concluded by urging Europe to embrace change and seek opportunities in a rapidly shifting global landscape. "This is the moment for Europe to act with ambition and vision to secure its future." (end)
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