Chinese President Xi Jinping will hold talks with Ursula von der Leyen and French President Emmanuel Macron in Paris.
EU chief Ursula von der Leyen said she would push for “fair and not distorted” competition with China in talks with Chinese President Xi Jinping.
“I have made it clear that the current imbalances in market access are unsustainable and must be addressed,” von der Leyen, the European Commission president, said hours before a meeting between her, Xi and French President Emmanuel Macron in Paris.
Xi began a three-country tour of Europe on Sunday as EU officials investigate the trade practices of Chinese firms operating in the bloc.
The European Commission launched an investigation last week to determine whether European medical device suppliers are being granted fair market access in China.
The investigation follows similar investigations into Chinese wind turbine suppliers and Chinese subsidies for solar panels, electric vehicles (EVs) and trains.
European automakers like Volkswagen and Renault are losing ground to Chinese electric vehicle makers, which have received billions of dollars in government subsidies in recent years.
EU officials are also concerned about Chinese espionage and Beijing’s military cooperation with Russia as Moscow continues its war against Ukraine.
Von der Leyen on Sunday reiterated the bloc’s position that it should “tone down” ties with China but not decouple from the world’s second-largest economy, in contrast to Washington’s aggressive moves to completely exclude key Chinese industries.
“We were very clear about our relationship with China, which is one of the most complex but also one of the most important,” she said.
But von der Leyen said the EU could not accept “market-distorting practices”.
“China is currently producing more than it sells with massive subsidies due to its own weak domestic demand. This leads to an oversupply of subsidized Chinese goods such as electric vehicles and steel, leading to unfair trade,” she said.
Von der Leyen said she would encourage Xi to address “excess capacity” in the short term.
Xi’s visit is seen as a test of the EU’s efforts to maintain a fine line between Beijing and Washington, with the Chinese leader widely expected to seek to exploit divisions between Western allies.
While European leaders have concerns about Beijing’s growing power and influence, the bloc is divided over how to respond to the heated US-China rivalry.
Macron, who treated Xi to the official honor of a full state visit, has often warned against Europe becoming a vassal of the US and is widely seen as trying to find a third way in geopolitical relations.
“In Europe we disagree on this issue because certain actors still see China essentially as a market full of opportunities,” Macron said in an interview with French newspaper La Tribune ahead of Xi’s visit.
After a two-day visit to France, Xi will travel to Serbia and Hungary, both of which are considered friendly with Beijing.