EU says China needs to give EU companies fair market access

Malmstrom said China has to give European companies the same kind of market access that Chinese companies enjoy in Europe before discussions can start on a bilateral free trade agreement.

“But for us there is a clear link between the steel overcapacity of China and the market economy status for China”, he said at the news conference.

The EU is in the process of considering whether or not to grant China market economy status, a designation that would make it much harder for major economies to fight Beijing over alleged unfair trading practices.

But on Wednesday, the outlet published an article entitled: “Jean-Claude Juncker’s survival strategy: Eight reasons why the embattled European Commission president isn’t going anywhere”.

As the world’s biggest trader in goods China is crucial to the global economy and its performance affects partners from Australia to Zambia, which have been battered by its slowing growth – while it faces headwinds itself in key developed markets.

“China has a lot of liquidity and needs to invest it somewhere”, one senior European Union official said, asking not to be named.

China should remove barriers and provide better legal certainty for businesses, while all parties must observe global trade systems and their rules, European Commission President Jean-Claude Juncker said on Wednesday.

Lu Kang, a spokesperson for Chinese Foreign Ministry, answers questions during the ministry’s routine press briefing in Beijing, capital of China, July 12, 2016.

For his part, President Xi Jinping said China would not change its policy of support for European integration, and is happy to see a prosperous and stable EU, as well as a prosperous and stable Britain. This week, the U.S. Department of Commerce found in an initial ruling that U.S. imported stainless steel sheet from China benefits from government subsidies and said it would impose punitive tariffs on these products.

European Trade Commissioner Cecilia Malmstrom said there was “urgent pressure” for China to curb its excess capacity at the annual meeting.

The EU had “not made up its mind yet”, said Juncker.

Britain’s vote to exit from the EU was also discussed during the summit on Monday where both sides reiterated that Brexit won’t affect China-EU ties.