Beijing and Berlin ‘exchanged opinions’ amid reported plan to shut China out of EU market
Chinese Commerce Minister Wang Wentao held a video call with German Economy Minister Katherina Reiche on Monday, just over a week before the next round of trade talks between Beijing and Brussels, amid reports that Germany and France are pushing for a new tool that would enable the EU to swiftly shut China out of the European market. Wang and Reiche “exchanged opinions on the Sino-German and…
On Monday, Chinese Commerce Minister Wang Wentao engaged in a video conference with German Economy Minister Katharina Reiche, occurring just over a week prior to the forthcoming round of trade negotiations between Beijing and Brussels. According to a brief statement from the Chinese side, the two ministers "shared perspectives on the China-Germany and China-Europe economic and trade relationships."
The German government has yet to issue an official statement, and did not respond to inquiries from the South China Morning Post. The conversation transpired 10 days prior to Wang's anticipated meeting with EU counterpart Maros Sefcovic in Beijing on October 8, for the second China-EU trade dialogue. Chinese sources have characterized the discussions as "challenging," and the delegation may forgo its national holiday, which spans from October 1 to 7, to prepare for the talks, a source familiar with the situation disclosed to the SCMP.
The call also came as the European side ramped up preparations. Spanish media outlet Dossier Bruselas reported on Monday that France and Germany were finalizing plans to revise the EU's Anti-Coercion Instrument (ACI), also known as the "trade bazooka." This instrument would empower Brussels to implement a range of countermeasures, including tariffs, quotas, export controls, and market exclusions, provided a qualified majority of EU member states endorsed the move.
The proposed revisions would enable the European Commission to employ the tool without requiring member states to reach a qualified majority to veto it, as reported by Dossier Bruselas. The Elysee Palace and the German Federal Press and Information Office had not yet confirmed the information. As the European side intensified their preparations, some German businesses reportedly began preparing for the worst-case scenario, with Politico reporting last week that certain German companies were "anxious" and "stockpiling" rare earths in anticipation of a breakdown in negotiations and potential retaliation from Beijing. The German Ministry of Economic Affairs declined to comment on the report.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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