Steinmeier tells China to fix trade imbalance

German President Frank-Walter Steinmeier told Chinese leaders on Thursday that Europe needs to reduce its reliance on Beijing.

Speaking at Peking University, Steinmeier argued that China's drive for economic self-sufficiency should not create one-sided dependence for other markets.

He acknowledged that protecting domestic industries from external shocks is a reasonable goal for China. However, he stated that this independence must not make European economies vulnerable to Chinese control.

The remarks come as the European Union calls its widening trade deficit with China unsustainable. Brussels warned in September that it will use every available tool to correct the imbalance.

Steinmeier noted that European companies often face limited access to the Chinese market. Meanwhile, European markets absorb large volumes of state-subsidized Chinese imports. He also pointed to Beijing's controls on raw material exports as a source of friction.

Germany and France have proposed a new EU rapid-action measure against countries that harm European interests. China is expected to be a primary target of that policy.

Steinmeier emphasized that Europe intends to preserve its industrial base. He expressed confidence that dialogue between Brussels and Beijing will yield solutions. The German president is in China for a five-day visit and will meet with President Xi Jinping on Friday.