European Commission to ‘Intensify’ Coordination With US on China Policy, Official Says

Stefano Sannino, secretary general of the European External Action Service, noted that the U.S. and the EU have set up a dialogue on China and applauded the work done by the Trade and Technology Council in harmonizing American and European trade measures. But he also said the two sides need to take more steps to counter Beijing, echoing past calls for more alignment from former government officials and policy experts (see 2406280041).

“We need to bring all these strengths and activities together, because we need to be much more impactful and effective in how to influence the calculus in China,” Sannino said during an event hosted by the Aspen Institute. “The best way to avoid an open clash is deterring it, and that’s what we need to do.”

Jens Plotner, foreign and security policy adviser to the German chancellor, also said more work needs to be done “on both sides of the Atlantic” to coordinate measures such as export controls and tariffs. “I think the more” the U.S. and the EU coordinate “our trade policies, our punitive policy elements in trade politics toward China, the smaller the risks that there is a chasm” between the EU and U.S.

He acknowledged that aligning trade restrictions is “complicated,” but it’s “imperative that we come to a common understanding.” He said U.S.-EU trade harmonization against China should be one of the main priorities of the next European Commission, which last week reelected Ursula von der Leyen president.

“I think one of the tasks of the new commission will be to intensify the discussions we’re having with Washington,” Plotner said, regardless of who the U.S. president is next year. “I think managing the rise of China and avoiding a war, god forbid a hot war or a trade war -- a global trade war -- that is the challenge of the century.”

Asked about specific steps the EU can take to deter China, Plotner said the bloc needs to continue preaching the importance of a “rules-based international order” and transition back toward settling all trade disputes at the World Trade Organization.

“I think the good old WTO, if it needs to reform -- let’s do it,” he said. “I still am convinced, and we still are convinced, that reactivating the WTO is the best way to allow China to develop economically -- which I think is inevitable -- and in doing so, not crush all the others, but do that in a rules-based environment.”

Sannino was also asked how the EU should be approaching third countries, such as India, that haven’t imposed sanctions against Russia. Sannino, whose agency leads EU international relations efforts, said the bloc needs to “engage much more” with those countries.

“We need to build partnerships with countries that are maybe not fully aligned with our policies,” including countries that are “hedging their bet all the time,” he said.

But Sannino also said he’s not expecting India -- and other countries that haven’t imposed trade restrictions against Russia -- to suddenly take a stance. “This is the reality of our new world,” he said. “You have a less clear division or less clear definition of camps. And we have to work with this.”