China’s foreign ministry said on Tuesday that the country is not the “main cause” of the problems facing the European Union’s economy, following talks in Brussels aimed at avoiding a damaging trade war.

China’s large – and growing – trade surplus with the 27-nation bloc has increasingly raised concerns across Europe, putting pressure on Brussels to protect local industries.
After talks on Monday with visiting Chinese Trade Minister Wang Wentao, EU trade commissioner Maros Sefcovic issued a stern message that “the status quo is not an option”.
Asked about the discussions on Tuesday, a spokesman for Beijing’s foreign ministry said that “China and the European Union are partners, not rivals.”
“The root causes of the issues facing the European Union do not lie with China,” Guo Jiakun said at a regular press conference.
“The key to solving the economic and commercial issues between the two sides lies in deepening cooperation and achieving joint development,” he said.
He added that China was willing to “strengthen communication and consultation with the EU side (and) properly address trade differences in a constructive manner.”
Sefcovic and Wang plan to meet again in October in China.

Brussels fears it will lose several industries entirely if it does not act against a glut of cheap goods made in China, threatening manufacturers in Europe.
Europe insists on the need for a level playing field, noting that Chinese firms have an unfair advantage due to massive state subsidies.
Besides the trade imbalance, other issues include Beijing’s strict export controls on rare earth elements essential to the modern economy, introduced last year.










