Chinese firms condemn Draghi’s support for tariffs

Chinese firms operating in the EU have expressed strong disapproval of Mario Draghi's recent comments regarding the potential need for tariffs to protect European industries from foreign competition. The China Chamber of Commerce to the EU (CCCEU) highlighted concerns that such tariffs could exacerbate existing trade tensions between Brussels and Beijing. They emphasized the importance of a cooperative approach to address climate change and promote sustainable development instead of restrictive trade measures. Draghi's report, published on September 9, 2023, criticized Chinese overcapacity in green technologies and labeled China as a high-risk supplier of critical minerals. The CCCEU countered that this perspective fails to recognize China's significant role in global decarbonization efforts and the increasing demand for clean energy technologies. They argued that viewing China's production capacity as a threat overlooks the potential benefits of collaboration. The CCCEU also responded to Draghi's call for diversifying the EU's supply of critical minerals away from China, stating that labeling China as high-risk could hinder opportunities for joint efforts in securing reliable supply chains. The backdrop of these discussions includes rising trade frictions, exemplified by China's anti-dumping probe into EU dairy imports and the EU's provisional duties on Chinese electric vehicles. These developments occur amid broader geopolitical tensions, particularly concerning China's relations with Russia and the political status of Taiwan. The CCCEU's remarks reflect a desire for constructive dialogue rather than escalating trade disputes, emphasizing the need for mutual understanding in addressing global challenges.