The European Union and China pledged on June 25 to uphold a rules-based international trade system, making an oblique criticism of growing protectionism in Washington despite their own disagreements.

The two sides held high-level economic meetings in Beijing as both face rising trade tensions with the United States.

But a top EU official made it clear that Europe is not fully on the same page as China, calling on Beijing to do more to make market access more fair and reduce overcapacity in steel and other sectors, including hi-tech.

Hosting the talks, Vice Premier Liu He stressed China and the EU had a common interest in defending the global multilateral trading system.

“Both sides believe that we must resolutely oppose unilateralism and trade protectionism and prevent such behavior from causing volatility and recession in the global economy,” Lieu told a media briefing after the talks.

Liu had led China’s three rounds of trade talks with the U.S., negotiations that have broken down over the Trump administration’s pledge to move forward with tariffs despite an agreement in May to put the duties on hold.

 

EU Commission Vice President Jyrki Katainen said, however, that areas of disagreement also need to be addressed if China and the EU are to develop their economic, trade and investment relationship.

“It is essential that we work together to tackle overcapacity in sectors such as steel and aluminum,” Katainen said, specifically identifying the industries that Trump first took aim at when he embarked on a tariff war in March.

He also urged China to prevent overcapacity in other industries, including high-tech sectors covered by the “Made in China 2025” strategy.

Last month, European lawmakers approved a far-reaching proposal for tougher scrutiny of foreign investments, partly in response to a flurry of Chinese acquisitions of European firms.

Later this week, the Trump administration is expected to unveil new measures to curb Chinese companies buying stakes in U.S. firms, giving another twist to a spiraling trade conflict between the world’s two largest economies.

Washington has complained that China is misappropriating U.S. technology through joint venture rules and other policies, and it has already announced tariffs on $34 billion worth of Chinese goods, the first of a potential total of $450 billion, as a result. The new tariffs are due to take effect on July 6.