
Bernard Guetta, Member of the European Parliament
Photo by MARTIN BERTRAND / HANS LUCAS / HANS LUCAS VIA AFP
The European Union is preparing to introduce a new “anti-overproduction tool” by September that will limit the access of Chinese goods to certain parts of the market. Beijing has already threatened retaliatory measures, from restrictions on supplies of rare earth metals to anti-dumping investigations against imports from the EU. MEP Bernard Guetta calls on Brussels to change tactics: stop defending against Chinese overproduction and go on the offensive, imposing on Beijing a balance of power that will force it to reconsider its trade policy. Europe’s main trump card, according to Guetta, is the scale of its market and its alliance with Africa, for which competition with China will develop.
We are finally awakening. The possibility that China's technological advances, low production costs and the scale of government subsidies could undermine advanced European industries - and not just sectors lacking strategic value - is raising alarm bells across the EU.
Discussions are now no longer about whether measures should be taken, but about what they should be. However, simply opening your eyes and becoming defensive is no longer enough. We must move from defense to offense, stop thinking solely about defending against Chinese overproduction, and impose on Beijing a balance of power that will force it to come to the negotiating table and reconsider its policies.
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