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Karl Falkenberg, Former top trade and environment official at the European Commission discussed the current disruptive changes in the international system and the need for Europe to define its position. Friedrich Merz's visit to China is seen as a sounding mission to explore the possibility of a rule-based multilateral system, rather than a hemispheric division. Europe is determined to cooperate based on multilaterally negotiated rules, focusing on stability and opposing protectionism. China and Europe have important markets and investment relations, but there are imbalances that need to be addressed, including those affected by other major players like the US. The visit aims to build a solid relationship, understand how to handle imbalances, and discuss geopolitical considerations, trade, and investment-related issues.

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00:00Carl Falkenberg is a former trade and environment official at the European Commission.
00:05We are living times of disruptive changes for the moment when it comes to the international system.
00:13We're moving away from rule-based UN, WTO, other international organizations,
00:21structured world to one that looks more hemispherically developed.
00:26And Europe is clearly obliged to find its own position in that order.
00:35We have constantly argued that we are in favor of multilateral rule-based systems.
00:41So I guess part of Friedrich Merz's visit to China is to sound out the possibilities
00:49to continue to work on a more rule-based multilateral system
00:56rather than falling back into what I would almost call hemispheric division of the planet.
01:03Well, Merz's repeated de-risking, not decoupling.
01:07I mean, after these meetings with Xi and with Premier Li,
01:10do you think that concept looks clearer or is it simply more politically necessary?
01:17I think for the moment it is essentially a sounding mission.
01:23It's Merz's first visit to China as chancellor.
01:29And therefore, I think he's going to sound what he hears.
01:38Because there are issues where within the European Union concerns also in relation to China have been identified.
01:49They are partly related to trade.
01:52They're partly investment related.
01:54But geopolitical considerations also are at stake.
01:58So there is a broad agenda and Europe is literally trying to define where and with whom it can cooperate
02:09on the basis of rules negotiated multilaterally rather than sheer power.
02:17Premier Li stressed stability opposing protectionism.
02:20So in practical terms for China, what does China secure from closer coordination with Europe
02:28and with Germany in particular right now?
02:30Well, we remain two very important markets to each other.
02:36Important investment relation.
02:40Europe is investing substantially in China.
02:44China is investing in Europe.
02:46So I think there are there are elements on which to to build a solid relationship.
02:55We have disequilibria in our relations.
02:58And I think these imbalances will also be addressed.
03:03And we need to we need to understand how we can handle those.
03:07And these imbalances are not just bilateral EU China, but they are they are also affected by what other
03:17major players like the United States are doing because we all understand trade deflection.
03:24What cannot be sold in the U.S. is seeking other markets on the planet.
03:29And the European market is one of those.
03:31But that has negative effects for Europe.
03:34A huge part.
03:34Like you can see.千
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