China Warns EU Against Protectionism: Inflation May Rise
Chinese Foreign Minister Wang Yi emphasized during talks with France that Europe's protectionist economic policies will negatively impact trade.
During a phone call with French Foreign Minister Jean-Noel Barrot, Chinese Foreign Minister Wang Yi stated that the protectionist economic policies adopted by the European Union could increase inflation and disrupt the green transition process.
Highlights from the Phone Call
Chinese Foreign Minister Wang Yi held a telephone conversation with French Foreign Minister Jean-Noel Barrot to discuss bilateral relations and economic issues.
Negative Impacts of Protectionist Policies
Wang Yi stated that the European Union's recent protectionist policies will not enhance the continent's competitiveness, but rather drive up inflation and hinder the green transition process.
Trade Relations Between China and the EU
The Chinese minister emphasized that the parties must remain committed to mutual benefit and openness, and that resolving trade issues through constructive dialogue is essential.
Expected Constructive Approach from France
Noting that they expect a rational and pragmatic approach from France as a major power with a strategic vision, Wang expressed hope that France would encourage the EU to develop its relations with China accordingly.
Concerns Over the Industrial Acceleration Act Draft
China holds the view that the rules of origin and incentives included in the European Union's Industrial Acceleration Act draft, announced in March, will create investment barriers for Chinese companies.
Restrictions on Foreign Investors
In a statement published by the Chinese Ministry of Commerce on April 27, it was stated that the draft legislation in question is restrictive for foreign investors in strategic sectors covering batteries, electric vehicles, solar panels, and critical raw materials.