EU trade restrictions risk undermining China-EU industrial cooperation, supply chains: industry body

The China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) has expressed deep concern over a recent spate of restrictive measures by relevant EU institutions and member states at both legislative and administrative levels, saying the measures show a clear protectionist tendency and could undermine mutually beneficial business cooperation and the stability and smooth operation of industrial and supply chains, according to a post on the chamber’s official WeChat account on Wednesday.

The CCCME, a national industry organization representing China’s machinery and electronics foreign trade sector, said that China and the EU have highly complementary economies. This came amid recent media reports that France and Germany are drafting a joint document urging on the European Commission to strengthen relevant trade and economic security tools.

Through long-term cooperation in machinery and electronics, including trade in goods, two-way investment and localized operations, joint technology R&D, and upstream and downstream collaboration, the two sides’ industrial chains have become deeply interconnected, with closely intertwined interests and mutual dependence, the CCCME said.

The chamber said this industry ecosystem is the result of market forces and independent business decisions, creating numerous jobs and development opportunities for both sides, and should be valued and safeguarded by both parties.

The CCCME said it noted the Chinese Ministry of Commerce’s firm stance against trade protectionist practices and its strong determination to safeguard China’s economic and trade interests, expressing its full support.

China and the EU should seek effective ways to address their respective concerns in a spirit of mutual respect and friendly dialogue, the CCCME said. It called on the EU side to listen carefully to the views of industry, avoid implementing negative legislation and policies, and resolve differences through government-to-government consultations and industry dialogue, so as to jointly maintain a fair and predictable bilateral economic and trade environment.

The CCCME said it would closely monitor relevant developments, assist machinery and electronics companies in properly addressing external risks and challenges, and work to safeguard the legitimate rights and interests of Chinese industries and the broader China-EU economic and trade relationship.