China hits back at Ursula von der Leyen's 'baseless, biased' speech at G7 summit

China has deed backmost astatine nan involution of Ursula von der Leyen astatine nan G7 summit, during which she excoriated Beijing for perpetuating what she called a "pattern of dominance, dependency and blackmail" vis-à-vis its trading partners.

"We definitive beardown dissatisfaction and patient guidance to those baseless and biased remarks that bespeak double standards," Guo Jiakun, nan spokesperson of nan Chinese Foreign Affairs Ministry, said connected Wednesday astatine a property briefing.

The speech of accusations upends nan perceived momentum successful EU-China relations triggered by US President Donald Trump's sweeping tariffs, which person targeted friends and adversaries alike and dispersed panic crossed nan business world.

The export-oriented bloc has been moving nan phones to unafraid replacement markets that tin thief cushion nan effect of Trump's disruptive policies. With its 1.4 cardinal citizens, China is, for some, nan astir evident prime to capable nan gap.

Sensing an opening, Beijing has made respective overtures to curry favour pinch Brussels, including by lifting the arguable sanctions on members of nan European Parliament and re-engaging successful talks to lick nan conflict complete China-made electrical vehicles.

Last month, Chinese President Xi Jinping hailed the 50th anniversary of EU-China relations arsenic an opportunity to "open up a brighter future" successful diplomacy.

"Both sides should uphold multilateralism, safeguard fairness and justness (and) reason unilateralism and bullying," Xi said, successful evident reference to Trump's duties.

Von der Leyen replied: "We stay committed to deepening our business pinch China. A balanced relationship, built connected fairness and reciprocity, is successful our communal interest."

But during nan G7 acme successful Canada, nan president of nan European Commission adopted a surprisingly hawkish tone to denounce China's state-led system and nan "distortions" caused by its business overcapacity and heavy-handed usage of subsidies.

She besides declared that nan root of "the biggest corporate problem" successful nan world trading strategy was China's accession to nan World Trade Organization (WTO) successful 2001.

Beijing's introduction into nan WTO has been controversial, arsenic it opened world markets to nan wide accumulation of low-cost exports. The admittance is linked to nan alleged "China shock" and a diminution successful manufacturing jobs successful some Europe and nan US.

At nan G7, von der Leyen warned a "new China shock" was presently underway.

"China still defines itself arsenic a processing country. This cannot be. China has mostly shown that it unwillingness to unrecorded wrong nan constraints of nan rules-based world system," von der Leyen said.

"While others opened their market, China focused (on) undercutting intelligence spot protections, monolithic subsidies pinch nan purpose to predominate world manufacturing and proviso chains," she went on. "This is not marketplace title – it is distortion pinch intent."

In reaction, nan Chinese Foreign Ministry sought to move nan tables and accused nan EU of lavishing its ain companies pinch "massive subsidies" and pursuing a argumentation of "European preference". The EU has likewise accused Beijing of a buy-China clause.

"The alleged overcapacity communicative is thing but a pretext utilized by applicable countries to spell protectionist, simply because they fearfulness for their ain competitiveness and marketplace shares. The problem is not 'overcapacity', but 'over-anxiety'," Guo said.

"The EU is moving to boost its maturation and competitiveness. That requires giving up double standards, being much unfastened and embracing cooperation."

Rare earths dispute

At nan halfway of von der Leyen's involution was Beijing's caller determination to restrict nan income of 7 uncommon world materials, which nan Commission had described arsenic "alarming".

China holds a quasi-monopolistic position complete uncommon earths, nan 17 metallic elements that are basal for building cutting-edge technologies. The state commands astir 60% of nan world's proviso and 90% of nan processing and refining capacity.

"China is utilizing this quasi-monopoly not only arsenic a bargaining chip, but besides weaponising it to undermine competitors successful cardinal industries," she said.

Although nan restrictions person eased successful caller days, von der Leyen cautioned "the threat remains" and called connected nan G7 to adjacent ranks successful "pressuring" China.

Her remarks were made successful nan beingness of Trump, whose management is bent connected curbing China's emergence arsenic a high-tech subject superpower. Officials successful Brussels dream China tin beryllium a shared constituent of liking to fortify nan vulnerable transatlantic alliance.

"Donald is correct – location is simply a superior problem," she said, appealing to nan American.

The Chinese Foreign Ministry dismissed these objections, insisting nan state was acting successful a "responsible" measurement and would velocity up "the reappraisal and approval" of export licences, which overseas clients request to get nan sought-after materials.

"The alleged 'market distortions' and 'overcapacity' accusations are perfectly false. The G7 usage them arsenic an excuse for their waste and acquisition protectionist practices, and to fundamentally incorporate and suppress China's business progress, and politicise and weaponise economical and waste and acquisition issues," nan spokesperson said.

Despite nan heated rhetoric, nan ministry extended its manus to deepen ties pinch nan EU, signalling nan state is still hopeful for a negotiated reset.

"China stands fresh to summation connection and coordination pinch nan EU, decently grip waste and acquisition differences, and execute win-win and shared prosperity," Guo said.

"That said, we firmly reason immoderate effort to wounded China's correct to improvement aliases moreover asseverate one's ain interests astatine China's expense." 

An EU-China acme is scheduled to return spot successful precocious July.