China’s Wang Urges EU to Avoid Escalating Trade Disputes

China’s foreign minister on Monday urged the European Union to engage in “constructive dialogue” in order to avoid escalating trade disputes during a phone call with his French counterpart, state media said.

The EU and several European countries, including France, have toughened their stance towards Beijing to protect their businesses from what they deem unfair competition in areas including corporate acquisitions, public procurement and electric vehicles.

Beijing frequently denounces such measures as the politicization of trade, disguised protectionism or even discriminatory actions aimed at curbing Chinese companies.

China and Europe “must resolve trade frictions appropriately through constructive dialogue to avoid an escalation of confrontation”, Wang Yi told Jean-Noel Barrot, according to China’s Xinhua state news agency.

“Protectionism will not strengthen European competitiveness. On the contrary, it will deprive consumers of quality products at favorable prices, fuel inflation and hinder the green transition,” Xinhua quoted Wang as saying.

Pointing out that China is one of the world’s largest markets, Wang said “its development represents an opportunity for the EU, not a challenge,” adding that he hoped Paris would encourage Brussels “to move forward in concert” with Beijing.

Wang also reiterated China’s position on Taiwan, the self-ruled island that China regards as part of its territory.

He said he hoped French authorities would “refrain from any form of official exchange with Taiwan and send no wrong signals to Taiwanese pro-independence forces”.

French lawmakers have made several visits to the island in recent months, during which they met President Lai Ching-te and other leaders.