What does Europe expect from China?

BEIJING (AP) Europe wants two things from China: first, a change in its relatively pro-Russian stance on war in Ukraine. Second, a reduction in the trade imbalance. Exports of Chinese goods to the EU last year exceeded their imports from the 27-nation bloc by 291 billion euros ($310 billion).

It's unclear whether this will go very far on either front.

German Chancellor Olaf Scholz became the latest European leader to leave China with a promise of talks but little more. Chinese statements on his meetings in Beijing This week did not appear to give ground on the issues that divide the EU and China.

There are reasons for hope in Europe. China is doing badly wants foreign investment to revive its flagging economy. And China has made efforts to improve relations, from Europe to the United States and Australia, despite its differences with them.

But these considerations may not outweigh China's broader strategic reasons to align with Russia as it seeks an alternative to the U.S.-led global order and to promote its green energy companies as it tries to make the nation a technology leader.

A EUROPEAN CIVASSATION ON PRICES

The EU and the United States complain that Chinese policies to promote green energy have prompted companies to build too much manufacturing capacity for electric cars, solar panels and other related products.

Cheap exports have taken a toll on solar companies in Europe and America and pose a potential threat to other industries. The EU launched an investigation China has seen a recent drop in Chinese subsidies and may impose tariffs on electric vehicles exported from China.

China agreed to negotiate with the United States over production capacity, but remained committed to defending its exports of green energy products. They have not only enriched global supply and eased global inflationary pressures, but also made an important contribution to the global response to climate change and the green and low-carbon transition, Chinese leader Xi Jinping told Scholz.

Overcapacity is also a problem for China. Experts called for better policy coordination. so that not all provinces favor the same industries. While this may prevent future problems, it will not reduce existing overcapacity.

Not everyone in Europe agrees that tariffs would be a good thing. China is a major market for many European companies, and some fear tariffs could be imposed. start a trade war.

The German Chamber of Commerce said it wanted the focus to be on further opening Chinese markets to German companies. In line with this thinking, Scholz called for a reliable legal system, intellectual property protection and equal market access for foreign companies in China.

These questions have taken on increased importance as Chinese companies become leaders in innovation in key technologies. A recent Chamber survey of German companies found that 5% saw Chinese competitors as leaders in innovation, and 11% of them in the automotive sector.

This is really a new topic, said Maximilian Butek, executive director of the German Chamber of Commerce in East China. And if these highly competitive companies are still protected by the government, it will lead to global challenges.

A FUNDAMENTAL DIVISION IN UKRAINE

If there is one issue that most European countries can agree on, it is the hope that China will rely on Russian President Vladimir Putin to stop the invasion of Ukraine, which is now in its third year and shows no signs of giving up.

Dutch Prime Minister Mark Rutte said three weeks ago In Beijing that he had asked the Chinese leaders to exercise considerable weight… over Russia to influence the course of events. Five days later, French Foreign Minister Stéphane Séjour declared after meet his Chinese counterpart that France expects China to send clear messages to Russia on Ukraine.

This week, it was Scholz’s turn. China's word carries weight in Russia, he said. So I asked President Xi to put pressure on Russia so that Putin finally ends his senseless campaign, withdraws his troops and ends this terrible war.

The problem is that Europe and China have fundamentally different starting points. Europe, alongside the United States, says Russia is wrong and should withdraw its forces and leave Ukraine. China does not blame Russia and says any peace deal will have to address Russia's concerns as well as those of Ukraine and the West.

China has weakened Western sanctions by continuing to trade with Russiaand Scholz and others have expressed concerns about reports that Chinese companies sell dual-use items that help Russia build military equipment. China has criticized the United States and other countries for prolonging the fighting by supplying weapons to Ukraine.

China has not supplied arms to either side, and it has the right to maintain normal economic and trade relations with Russia, said Ding Chun, director of the Center for European Studies at Fudan University of China. Shanghai.

The Chinese government shares others' desire to see an end to the fighting, but it appears unlikely to pressure Russia to withdraw. The Chinese statement on the Xi-Scholz talks did not meet the German leaders' request.

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Associated Press researcher Yu Bing contributed.