China has issued a sharp rebuke to European Commission President Ursula von der Leyen following her combative remarks at the G7 Summit in Canada, accusing her and other Western leaders of “interference” and promoting a narrative rooted in “bias and baseless accusations.”
During the summit, von der Leyen condemned Beijing’s trade practices, accusing China of fostering a “pattern of dominance, dependency and blackmail” through what she termed an unfair and state-led economic model. She further claimed that China’s industrial overcapacity and subsidies were “distorting global markets” and posed a threat to fair competition.
Her remarks, delivered during a closed-door session and later publicized by the European Commission, sparked immediate backlash from Beijing.
China: EU Criticism ‘Politically Motivated’
In an official statement released by the Chinese Foreign Ministry, a spokesperson said:
“The comments made by certain European leaders at the G7 are unjustified, politically motivated, and disregard China’s legitimate development rights. The accusations distort facts and reveal a Cold War mentality.”
China’s Commerce Ministry also weighed in, criticizing what it called “Western protectionism under the guise of fair trade.” Officials argued that the EU’s stance overlooks the benefits that Chinese exports have brought to global supply chains, particularly in green technology and manufacturing.
The Overcapacity Dispute
At the heart of the disagreement is a growing rift between China and the West over industrial policy, especially in sectors like electric vehicles, solar panels, and steel, where China is accused of overproducing and flooding international markets with underpriced goods.
Von der Leyen warned that unless action is taken, the EU’s domestic industries will be “hollowed out.” The European Commission is already preparing potential countervailing duties on Chinese electric vehicles a move that has drawn both praise and concern within European capitals.
China argues that these sectors are vital to its economic transition and global climate goals and that the accusations of unfair advantage ignore the subsidies and incentives offered within Europe and the United States.
Rising Trade Tensions
This latest clash comes amid intensifying global trade friction, as the G7 nations particularly the US and EU grapple with how to manage their relationships with China, which remains the world’s largest exporter and a key trading partner for most of them.
The G7 joint communiqué, while not directly naming China, echoed von der Leyen’s criticisms by expressing “concern over harmful trade practices that erode trust in the global trading system.”
In response, Chinese state media labeled the G7’s stance as “hypocritical,” accusing the bloc of pursuing de-risking strategies that amount to economic containment.
Strategic Implications for Europe
Analysts note that von der Leyen’s bold rhetoric reflects a strategic shift in Europe’s posture toward Beijing, one increasingly aligned with Washington’s tougher stance. However, European businesses with heavy exposure to China particularly in Germany and France are wary of escalating trade wars that could hurt their exports and supply chains.
At the same time, China is actively pursuing deeper trade ties across the Global South and BRICS nations, seeking to counterbalance Western pressure and build parallel economic alliances.
