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Ursula von der Leyen warns G7: China's trade policies threaten global cooperation

ursula von der leyen warns g7 chinese trade policies threaten global cooperation 1750118785

During the G7, Ursula von der Leyen warns about Chinese trade policies and calls for joining forces.

During the G7 in Kananaskis, Alberta, Ursula von der Leyen, President of the European Commission, sent a clear message: China's trade policies must not lead to internal conflicts, but rather to cooperation between countries. The European leader denounced Chinese restrictions on exports of raw materials vital to industry, such as those used to produce cars and wind turbines.

Chinese Restrictions and Their Impact

Von der Leyen criticized Beijing for “disrupting” global trade, accusing China of using subsidies to give its own companies an advantage over international competitors. According to a European Union statement, the president described these actions as a real “weapon” against global markets. The issue has become even more relevant after China significantly limited exports of permanent magnets and the minerals needed to produce them since last April.

A Call for Unity Among Allies

“Focusing on tariffs and duties between partners distracts us from the real challenges that threaten us all,” von der Leyen said, in a direct criticism of Donald Trump, who sat at the G7 table. The president acknowledged that Trump is right on one crucial point: there is a serious and complex problem. She then called on the American president to join with European allies to address the trade inequalities created by China, rather than imposing tariffs on their partners.

Europe's concerns

In recent months, Brussels has tried to convince Trump not to target the European Union in his trade war with Beijing. Von der Leyen has stressed that cooperation on China's industrial policies is key to ensuring a fair market. "China's policies are not about fair competition. They are about intentional distortion of the market," she clarified, highlighting how China is trying to dominate global supply chains through subsidies and unfair practices.

A new Chinese shock?

The president warned of what she called a “new China shock,” accusing Beijing of flooding global markets with low-cost products supported by state subsidies. Von der Leyen urged G7 nations to work together to counter this dominance in raw materials. During her speech, she brought a permanent magnet as a tangible example of the importance of these resources for European industries.

The G7's reactions

Despite von der Leyen’s strong words, the G7 as a whole may not take such a strong stance on China. According to a draft statement that was read, G7 leaders would commit to implementing a “critical minerals action plan,” but without explicitly mentioning China, referring instead to “non-market practices and policies” in the raw materials sector.

Bilateral meetings and future prospects

The European Commission president also had a separate meeting with Trump, where they discussed speeding up the work to reach a “good and fair” trade deal. Trade tensions cannot be ignored, especially in a context where Europe faces challenges such as increased defense spending and geopolitical crises in the Middle East and Ukraine, issues that will be at the center of the G7 meetings. “We cannot afford to fight a trade war while we need to increase security,” said the president of the European Council, António Costa.