European Commission President Ursula von der Leyen on Monday threatened China with retaliatory measures in response to its "market distorting practices," while also calling on Beijing to limit deliveries of goods with potential military uses to Russia.
"We will defend our companies, we will defend our economies. We will never hesitate to do so," von der Leyen said in a press conference after a three-way meeting with Chinese President Xi Jinping and his French counterpart Emmanuel Macron in Paris on Monday.
"A China that plays fair is good for us all. At the same time, Europe will not waver from making tough decisions needed to protect its economy and its security," she added.
The European Commission president said Chinese subsidized products such as electric vehicles and steel were "flooding the European market," posing a serious threat to European industries. They could even lead to "de-industrialization in Europe," she warned.
"The world cannot absorb China's surplus production," she added, alluding to a stagnation in Chinese domestic demand. "Therefore, I have encouraged the Chinese government to address these structural over-capacities," she continued.
Von der Leyen also stressed that "access to each other's market needs to be reciprocal," saying she had discussed with Xi "how to make real progress on market access."
If unfair trade practices were to continue, von der Leyen warned that the EU was ready to make full use of its "trade defence instruments," including launching investigations via its International Procurement Instrument.
The EU announced last year that it would examine possible tariffs on electric cars from China. Chinese electric vehicle giant BYD has signed a deal to begin manufacturing cars in Hungary, where Xi is scheduled to end his European trip on Friday.
Another key topic of Monday's meeting was China's stance on the Russian war in Ukraine, which von der Leyen said had an important impact on EU-Chinese relations "given the existential nature of the threats stemming from this war for both Ukraine and Europe."
Von der Leyen said "more effort is needed to curtail delivery of dual-use goods to Russia that find their way to the battlefield."
Chinese companies have repeatedly been accused of supplying dual-use goods to Russia, with some being sanctioned by the United States as a result.
Von der Leyen also said the European Union would "count on China to use all its influence on Russia to end Russia's war of aggression against Ukraine."
Europe and China have a "shared interest in peace and security," she stated. She praised Chinese President Xi Jinping for playing "an important role in de-escalating Russia's irresponsible nuclear threats."
Xi on Sunday wrote an article for the French newspaper Le Figaro, saying that China wanted to work with France and the international community to find ways to solve the Ukraine crisis.
With regard to the tense situation in the Middle East, von der Leyen said that "no effort can be spared in de-escalating tensions and preventing a wider conflict in the region."
She reiterated calls for a ceasefire and the release of hostages, and emphasized support for a two-state solution.
Von der Leyon also expressed hope that China would exert its influence on Iran and "play an important role in limiting the irresponsible proliferation of Iranian ballistic missiles and drones."
Overall, the three-way talks had been an "open and honest exchange," von der Leyen said. She looked forward to celebrating the 50th anniversary of EU-China relations next year.
Speaking during the three-way meeting, Xi said that the world is experiencing turbulent changes, and China and Europe should therefore deepen their partnership and strengthen mutual trust.
Macron, too, stressed the importance of Europe's relationship with China. "The future of our continent will depend on our ability to continue to develop balanced relations with China," he said.
Xi's visit to Paris was due to continue on Monday with a Franco-Chinese business meeting and a state banquet.
His arrival in Paris had on Sunday been met with a number of protests, including a demonstration by media rights group Reporters Without Borders in front of the Arc de Triomphe held to criticize the imprisonment of journalists in China.
Separate protesters had also gathered in the French capital calling for a "Free Tibet." The status of the autonomous Chinese region in the Himalayan highlands is disputed, with China's leadership suppressing calls for Tibetan independence.