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Europe Today: Is the EU about to take on a tougher economic stance towards China?

EU Commission chief von der Leyen is pulling her team together this morning for urgent talks on whether the EU should take on a tougher economic stance towards China. The closed-door discussion is seen as a first step towards potentially stricter trade measures. Mared Gwyn reports on the story.

READ MORE : http://www.euronews.com/2026/05/29/europe-today-is-the-eu-about-to-take-on-a-tougher-economic-stance-towards-china

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Transcript
00:13Good morning, it is Friday the 29th of May. I'm Maeve McMahan and this is Europe Today.
00:20Your morning dose of European news and analysis live here on Euronews.
00:25Coming up, Romania is on high alert after a Russian drone crashed into an apartment building in the major city
00:32of Galatz, close to the border with Ukraine.
00:35A mother and her child were injured and 70 residents evacuated in the most serious drone incident Romania has seen
00:42since the war began.
00:43And the US and Iran are reportedly edging closer to a deal on a 60-day memorandum of understanding to
00:50extend the ceasefire and begin talks on Iran's nuclear programme.
00:55But the deal still needs approval from President Donald Trump and has not quite been confirmed by Teichan.
01:01The developments come as Israel's Benjamin Natu Netanyahu orders the IDF to seize 70% of the Gaza Strip.
01:07Plus, the head of the World Health Organization has arrived in the DRC, pledging to, quote, do everything in his
01:15power to help contain a deadly Ebola outbreak.
01:18He's told locals they're not alone and they'll be supported in overcoming the outbreak.
01:22But with just days to go before the much anticipated World Cup, the US, Mexico and Canada have announced new
01:29measures for travellers arriving from affected regions in Africa.
01:33Meanwhile, in a major blow to the German Chancellor Friedrich Merz, speculation is growing that Nordrhein-Westfalia's Prime Minister Hendrik
01:41Wüst could emerge as a potential replacement.
01:44Now, no formal challenge has been launched, but with coalition tensions rising and Friedrich Merz's approval ratings struggling,
01:52the rumours are an unwelcome distraction for the leader of the EU's biggest economy.
01:57But first, an unusual Friday for EU commissioners. Commission Chief Ursula von der Leyen is pulling her team together this
02:04morning for urgent talks on whether the European Union should take a tougher economic stance towards Beijing.
02:11The closed-door discussion is seen as a very first step towards potentially stricter trade measures.
02:17For more on these important meetings, I'm joined here in the studio by our very own Mairead Gwynne-Jones.
02:22Good morning, Mairead, and just tell us about these discussions and why they're happening now.
02:26Well, this is happening today, Maeve, because there's now this deepening sense of urgency about what the EU needs to
02:32do to address a glut of cheap, subsidised Chinese exports that are flooding the EU market.
02:38We're hearing talk even of a China shock 2.0, so a situation similar to that of the US 25
02:44years ago in the Rust Belt, de-industrialisation and mass job losses.
02:49And if we look at the data, it's clear to see because the difference between what the EU exports to
02:54China and what it imports from China, so that's the trade deficit, stood at a massive €360 billion last year.
03:03That's been ballooning over the past decade and signs in the first quarter of this year that it's actually getting
03:08worse.
03:09So von der Leyen is pulling together her top team together.
03:11This is a conversation, an initial discussion about how the EU could sharpen its stance, but it is very political
03:18and geopolitical, Maeve.
03:20I spoke to a diplomat this week who said that China has predatory tactics, that it's willing to weaponise dependencies
03:27for geopolitical gain, and with Germany particularly vulnerable.
03:31We know Germany lost 120,000 manufacturing jobs last year alone.
03:36So this meeting, of course, of very high importance. How will Brussels respond? Will they be able to get a
03:41united front?
03:41Well, it's difficult because we know EU countries are split on this issue, but there are a few ideas on
03:46the table.
03:46They could discuss tariffs, quotas, potentially anti-subsidy duties.
03:50But there's a new idea going around as well, which is this idea of forcing EU companies to diversify their
03:55suppliers,
03:56making sure they procure the materials from at least two companies from more than one country.
04:02The EU's industry boss, Stéphane Zéjournais, who's very close to President Macron in France, of course, has championed this.
04:09Let's take a listen to what he had to say last week.
04:13You cannot reasonably expect today to source 100% of your raw materials for a given product from a single
04:20country,
04:20including for the sake of your own business, economic security.
04:25Now, it's important to note, as I said, EU countries are split.
04:28France is pushing for a harsher stance.
04:30Germany is much more cautious, wants to avoid a full-blown trade war with Beijing.
04:34And finally, Maeve, Beijing is also taking notice of this,
04:38saying yesterday that EU is being selective in its interpretation of data, threatening retaliation.
04:42So, in this discussion, which starts at 9am this morning, the Commissioners, I think,
04:47will have to tread a very fine line and expect this conversation to continue when EU leaders gather here in
04:53mid-June.
04:54Okay, Mary Gwynn, thank you so much for that update there.
04:57And for more coming up, we'll be joined by Michał Baranowski.
05:00That's the Polish Undersecretary of State for Trade.
05:02Michał Baranowski is also a political scientist
05:05and the author of the numerous publications on transatlantic relations,
05:10European policies and European security defence.
05:12He'll also be reacting to an incident that took place this morning in Romania,
05:16which the country is, of course, on high alert.
05:19A drone incident that saw a residential building struck
05:22and has put many neighbouring countries, of course, in a very difficult position.
05:27So, Minister, we're thrilled to have you with us in the studio.
05:29Thank you so much.
05:30And, of course, I want to talk to you about trade.
05:32But first, I need a reaction to this incident that we've seen this morning in Romania.
05:37Residential buildings being impacted here.
05:39Many people evacuated the whole country now on high alert.
05:42It's extremely, extremely serious.
05:45It's really hard to overstate how much of an escalation this is.
05:50This is another drone attack.
05:54Let's remember that now people have been injured in Romania.
05:59In September, about 20 drones have crossed into Polish space.
06:06These are not mistakes.
06:07These are provocations.
06:09And only a few weeks ago, Russia redirected with their electronic means
06:14a Ukrainian drone that hit a fuel depot.
06:19So we are now no longer in peace.
06:22Let's see how EU reacts.
06:25Let's see how NATO reacts.
06:26And how will they react?
06:27What's needed?
06:28It's very clear, actually.
06:29We have a very clear situation who is the aggressor here.
06:37It's, of course, up to the Romanian government to decide whether or not
06:42activate Article 4 of NATO that allows for us to have a consultation.
06:48EU has already spoken through the lips of President von der Leyen.
06:54There is a full solidarity with Romania and no one has any questions who is at fault here.
07:00And that steps need to be taken to push back against those drone invasions,
07:06drones attacks coming from Russia.
07:08Unacceptable.
07:09And meanwhile, of course, as you heard there from Mared Gwynne-Jones, our correspondent,
07:13this crucial talk is taking place today about China.
07:16And is it time, do you think, for the EU to get tough on Beijing?
07:19It is.
07:20And we are getting tougher.
07:21So I just concluded the meeting of the Competitiveness Council yesterday with my fellow
07:28economy and trade ministers.
07:30There is a – I heard in your interview that there are perhaps some splits.
07:36What I can confirm is that we are absolutely unified in terms of the impact that Chinese
07:43overproduction, the unfair trade practices have over Europe.
07:47So we are building a tools, a set of tools, including the Industrial Accelerator Act, including
07:55giving a boost to our industry to push back against those overproductions.
07:59Because will these tools have teeth?
08:01And do you blame China for wiping out our European industry?
08:05China is using non-market practices.
08:09We are not faced with a level playing field.
08:12We are seeing subsidies.
08:13We are seeing overcapacities.
08:16And we are seeing trade instruments on the part of China.
08:21So we have – we are getting tougher.
08:25Frankly, I think we need to be clearer and move faster.
08:30And that's what I expect from today's meeting of the European – of the Commission.
08:34And just briefly, a final question on EU-UK relations.
08:37And we know, of course, Donald Tusk was in London this week.
08:40Would you like to see the United Kingdom rejoin the EU one day?
08:43I personally would.
08:44Absolutely.
08:45I think UK is getting closer.
08:48The UK – the British people have seen that they made a mistake.
08:51And since then, they have been moving closer.
08:53The treaty that Poland just signed with the UK – it's more on the defence side – is another step.
09:00I think UK is getting closer, as are many other partners like Canada and others.
09:05Europe is a good place to be.
09:07We just need to push back against the Russian and Chinese influences.
09:12Okay. Minister Banerowski, thank you so much for joining us here on Europe Today.
09:16And now we can move on to Portugal, where authorities have made a number of arrests in an alleged corruption
09:22case linked to the Portuguese Socialist Party.
09:24It comes just hours after the Socialist Party in Spain, so their headquarters examined over a number of corruption allegations.
09:31For more, we can now head over to Lisbon and bring in your news correspondent, Ricardo Figueira.
09:36Good morning. Just tell us, what is the latest and how is the country responding?
09:41Good morning, Maeve. Well, the latest news is that the man in the centre of this political scandal, called Duarte
09:49Mural,
09:50he's going to be heard by the judge today, Duarte Mural, and his wife, Ruth Reymão.
09:58Well, who is this person? He's a direct aide to José Luis Carneiro, to the Secretary General of the Socialist
10:06Party.
10:06He used to be a direct aide to António Costa, the now President of the European Council, too.
10:13And, well, he runs a political campaign company.
10:18So, the news is that him, his wife, and several other party members, about a dozen party members,
10:26have made about 2 million euros in direct contracts from city halls and city boroughs run by the socialists.
10:36The other man at the centre of this case is Miguel Coelho.
10:41He was the mayor of one of the Lisbon boroughs, and he's now the leader of the socialists in the
10:51Lisbon Municipal Assembly.
10:54So, these are the people at the centre of the scandal.
10:58The Secretary General, José Luis Carneiro, he has made a press conference in this building right behind me yesterday.
11:06He said the searches conducted by the police were not against the party, but against this specific individual.
11:15However, this is not a small pawn.
11:17This is a direct aide to the Secretary General, and he also used to be a native of António Costa.
11:28So, quite a lot of information for us to digest there.
11:30Just as we're processing what's going on in Spain, Ricardo Figuero, thank you so much for that live broadcast there
11:36from Lisbon.
11:37Now, Hungary's new Prime Minister, Péter Magyar, is in Brussels today to meet EU Commission boss Ursula von der Leyen.
11:45He's, of course, trying to unblock the frozen EU funds for his country.
11:48For more on this very important story, we're joined here in the studio by our Hungary reporter, that's Sándor Zsíros.
11:54So, a big day for Péter Magyar.
11:56We've been talking about this for weeks.
11:58The stakes couldn't be higher.
11:59What are your expectations?
12:01Good morning, Maeve.
12:02Well, indeed, Péter Magyar was already here yesterday.
12:05He met NATO Secretary General Mark Rutte and Belgian Prime Minister Bárda Weyver,
12:10and his team was having last-minute negotiations to save as much EU money for Hungary as possible.
12:17You know that there was a lot of conflicts between the previous government,
12:21the previous government of Viktor Orbán,
12:24and the European Commission froze 17 billion of EU cash because of corruption, because of rule of law issues.
12:31And now Hungary and the EU decided that they will open a new chapter,
12:36they will open a new page for their relations,
12:40and Magyar is trying to save EU cash.
12:43Now the problem is that by the end of August, the deadline for the recovery funds expires,
12:48and Hungary could lose up to 10 billion euros, which is huge, so the work is underway.
12:55We don't know what will be the result.
12:56But Péter Magyar spoke on his social media yesterday, saying that they are closed to an agreement,
13:03and he also said, very interestingly, that lifting his veto on Ukraine is not a condition to get this money.
13:10Let's take a look at what he said.
13:15The issue of Ukraine, war, or gender, have never been raised.
13:20Please, what we're discussing, and as far as amendments to the law are concerned,
13:24is the fight against corruption.
13:26There are still open cases, but basically we have struck our agreement on many important points.
13:33And of course, Chandler, a big issue, first of all, underline is Ukraine's potential EU membership.
13:38How will that feature today in the talks?
13:40Well, Péter Magyar said that officially these issues are not linked,
13:44but I don't see any scenarios that, you know, Hungary gets a huge EU payout,
13:49and they are not lifting the veto at June, when, you know,
13:54all the countries should agree that Ukraine opens the first chapter.
13:58So, there might be a decision by Hungary by then.
14:02Péter Magyar said explicitly in the past that, you know,
14:05he is willing to lift his veto when, you know, Ukraine settles the right of the Hungarian minorities.
14:12By the way, it was not his veto, it was Orbán's veto.
14:15So, for the moment, technical talks are ongoing with Ukraine and Hungary.
14:20If they find a solution for the minority issues, there will be no issue for Hungary,
14:25and Ukraine could open the first negotiating chapter in June.
14:29OK, and of course, that meeting today, Chandler, taking place at 1,
14:32and I'm sure you'll be filing a story for us then, so we can all read it on yournees.com.
14:36Thanks for that update.
14:37But now we can move on, because the European Commission has slapped a 200 million euro fine
14:42on the Chinese online shop Temu.
14:44Known for selling cheap clothes, gadgets and children's toys,
14:47Brussels says they failed to identify the high risks of illegal products
14:51being offered on the EU market.
14:53The German MEP, Anna Cavazzini, has been working on this
14:57on behalf of the European Parliament and joins us live for more.
15:00Good morning. So, thank you so much for being with us.
15:03Just tell us, what happens if Temu fails to comply after this fine?
15:06Could the EU go further?
15:09Yes, let me first say good morning,
15:11and I'm happy and welcoming that the European Commission
15:15is finally following through on the basis of the Digital Services Act,
15:18because we have a problem. We have a problem in the European Union
15:21with so many unsafe products, products that are not complying to our standards,
15:25which are also, of course, not only having the consumers,
15:27but also creating a problem for companies that are complying.
15:30So that the Commission follows through is very, very important.
15:33And to your question, it is, of course, important that the company complies.
15:37So I think the ultimate goal is that they comply.
15:40But, of course, if they are not showing a path forward,
15:44then the Commission can go further.
15:45And what are the risks to European consumers,
15:48many that they don't even realise are out there?
15:52Yeah, for example, the Commission justified their decision on tests,
15:58buying tests, for example, and showing that a lot of products like chargers,
16:03but especially also toys for children, are not safe,
16:07are not complying with the standards, are also environmentally harmful
16:11if there are chemicals inside that are forbidden in the European Union.
16:14So I think if, you know, consumers trust our high standards
16:18that we are proud of in the European Union,
16:20they should also trust when buying it online.
16:22And do you expect now that Temu will play ball
16:25and change how they do business?
16:28I led the first European Parliament delegation to China recently.
16:32We also met with Temu when we were there.
16:34And I got the impression that they're in general willing to comply.
16:37They showed a lot of eagerness to comply.
16:39And I think also, of course, they understand it's also benefiting them in China
16:43if they're higher standards.
16:44And there's also a growing consumer market in China, of course.
16:48But it's also not so easy to just change the business model
16:50because, of course, their business model is based on cheap products.
16:54They can't control all the individual traders online.
16:57It's very difficult to control them.
16:59So they have to really step up.
17:00And they cannot only have nice words, but they have to show actions.
17:03And meanwhile, of course, we have the big talks taking place
17:05in the Commission today when it comes to China.
17:07How should the EU deal with China?
17:10I think there is a structural problem with unfair competition
17:14with products coming from China.
17:16It's not only the classical e-commerce products that we're just talking about,
17:19but, of course, also industrial products.
17:22And I think the European Union needs to make sure
17:25that there is, again, a level playing field,
17:27that there is, again, a market-based economy,
17:30which is at the moment not possible.
17:31And we are losing so many industrial jobs.
17:34You mentioned it before, especially also in Germany.
17:37So I think the European Union needs to toughen up.
17:40And that contains the Industrial Accelerator Act,
17:42that contains made-in-Europe provisions.
17:45But we also need to find a short-term solution
17:48for the surge of imports.
17:50So I think the Commission needs to put some more safeguards in place.
17:54Okay.
17:55A long, busy day here in Brussels.
17:56And for all those gathering on those talks,
17:58Anna Cavazzini, German MEP,
18:00thank you so much for being our guest this morning on Europe Today.
18:04And thank you so much for watching.
18:05As you can see, it is a busy news day.
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