Following talks in Paris with Chinese President Xi Jinping and French President Emmanuel Macron, European Commission President Ursula von der Leyen relayed that the EU is adamant about resorting to tough measures to protect its economy and security amid strained trade ties with China.

"China that plays fair is good for all of us," she said in her statement, adding, "Europe will not waver from making tough decisions needed to protect its economy and its security...We will defend our companies, we will defend our economies."

Von der Leyen claimed there were "imbalances that remain significant" and "a matter of great concern," as she spoke of Chinese subsidies for electric cars and steel that were "flooding the European market".

She further claimed that China is preventing EU companies from fair access to its market and asserted that "we stand ready to make full use of our trade defense instruments if this is necessary" since "Europe cannot accept market-distorting practices".

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This comes after Macron urged Xi to accept fair global trade rules for EU-China exchanges, noting that the European future "will very clearly depend on our ability to continue to develop relations with China in a balanced manner."

Way back when...

In September, von der Leyen made remarks widely interpreted as directed at China, expressing concerns about global markets being saturated with inexpensive electric cars artificially subsidized by states. Beijing has strongly opposed this probe, viewing it as unjust and politically driven.

Recently, the European Commission's trade commissioner suggested that tariffs on Chinese electric vehicles (EVs) might be implemented by June, following the initiation of an investigation into state assistance for electric car production in China. It is worth noting that any measures must be implemented by July 4.

China “cannot afford to have more and more restrictions to the European market”, Vasselier said as quoted by The Guardian, but at the same time, “China does not have an offer for Europe at this point."

The last face-to-face meeting between Macron, von der Leyen, and Xi occurred in April last year when the European leaders traveled to Beijing. Macron, accompanied by a sizable business delegation, secured 18 cooperation agreements between French and Chinese companies during that visit. His statement to reporters, suggesting that Europe should not blindly follow America's stance on the Taiwan issue, sparked controversy.

Xi's visit coincides with efforts from China and the EU to prevent a trade conflict, amid escalating tensions fueled by EU anti-subsidy investigations and what the EU perceives as concerns over espionage, Ukraine, and Taiwan.