China-EU trade: "Europe must realise that none of our real problems are caused by China"

CGTN Europe

CGTN Europe interviewed Erik Solheim, former Minister of International Development of Norway

Transcript

00:00Well, Germany's foreign minister has questioned the efficiency of tariffs during his trip to China.

00:06The French president, Emmanuel Macron, says he's warned Beijing that Europe could impose more duties on Chinese goods.

00:13But Germany's Johan Walderpol sought to play that down.

00:18We have problems with a very strong range of products, particularly in the automotive sector,

00:23which we consider to be subsidized and which we attribute to overproduction in China.

00:27I have addressed this issue here.

00:28This must be acknowledged in China.

00:30However, I am skeptical that more tariffs help us more.

00:35Erik Soltheim is Norway's former minister for international development.

00:40Welcome to the program again. Good to see you.

00:42Germany's foreign minister cautioning that tariffs on China could trigger what's described as a ping-pong effect or a spiral of countermeasures.

00:51How realistic is that risk?

00:55I think that's a very realistic warning.

00:58It seems to be easy to start trade wars, but always very, very difficult to stop them when they first started.

01:05So let's avoid any kind of spiraling trade conflict between China and the West.

01:11It will make us all poorer.

01:12So thank you for this warning. It's good.

01:14Okay, well, if tariffs are considered a last resort, what is the realistic middle ground for both sides?

01:24I think the most important is that Europe realized that we are now far behind China.

01:30China is leading on basically every technology.

01:33China has a much more efficient industrial ecosystem.

01:36So we need to learn.

01:38And the most realistic way for that is much, many more Chinese investments in Europe.

01:43There are some good news.

01:44I mean, CETL, the biggest electric battery maker in the world, just announced a partnership with Stellantis,

01:534 billion euros in Saragossa, in Spain, and it will create 3,000 jobs directly in the plant,

02:02and of course many, many more indirectly.

02:05That will bring the best of Chinese technology to Europe, and of course we should try to learn from it

02:10and see if we can do even better in the future.

02:14Another similar news, Volkswagen announced a huge investment in Hefei, in the Amway province of China.

02:22Well, that's to produce in China, but I think it's also to have ears and eyes in China

02:27to see what's happening on the technological front in China, and then to bring that to Europe afterwards.

02:34France, under President Macron, is calling for strong measures and even de-cooperation

02:41if China does not address trade imbalances.

02:45Do you think China is listening?

02:48I think the most important for Europe is to realize that none of our real problems are caused by China.

02:55Europe at the moment is struggling to be competitive.

02:59We have basically no economic growth in Europe, and we have an absolute rotating leadership,

03:05which is not easy when it is not easy to make long-term decisions.

03:09So for Europe to make itself more competitive is the most important answer to China.

03:14But of course, on that basis, we should demand Chinese investment in Europe,

03:19and for sure that China makes the competition in the Chinese market realistic and fair for everyone.

03:27Germany is urging caution on tariffs.

03:31I mean, doesn't this divergence between France on the one hand and Germany perhaps on the other single

03:36simply signal that there isn't a unified China strategy from Europe?

03:43I believe Europe in general terms need to realize that we are on our own.

03:51We need autonomy in Europe.

03:53We need to make sure that we are basing our decisions on our own strengths.

03:58Whether this relationship to China or to the United States, a stronger Europe will be beneficial.

04:04But at this historical juncture, China is much more innovative, far ahead of Europe in basically all green technologies

04:12than basically any other technologies.

04:15It has many more robots.

04:17Industrial production is a lot more efficient.

04:19And Europe, we need to discuss how can we be more competitive.

04:24You cannot close down the European markets.

04:27That will just make us even less competitive, and we will not be able to compete in any other foreign market.

04:32Eric Solheim, always a great pleasure to talk to you.

04:34Thank you so much for coming on the programme again.

04:37Eric Solheim, Norway's former Minister for International Development.

04:40Thank you so much, everyone.

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