Von der Leyen warns Europe faces second China shock amid trade tensions

European Commission President Ursula von der Leyen delivered a pointed warning to Beijing in her state-of-the-union address, declaring that a "second China shock" was already affecting Europe and pledging to deploy all available tools to rebalance trade ties with the country.

The speech on Wednesday offered few details on specific new trade measures targeting China, but analysts said its sharp tone was calculated to signal Brussels' firm stance ahead of crucial negotiations.

Timing tied to October trade deadline

Von der Leyen's remarks came as the European Union faces an October deadline for securing tangible results in rebalancing its trade relationship with China. EU Trade Commissioner Maros Sefcovic held a video conference with his Chinese counterpart Wang Wentao as planned on Thursday, underscoring the urgency of the diplomatic effort.

Analysts said the address was light on specifics but aimed to send a clear message to Beijing that Brussels intends to take a harder line on trade imbalances. The Commission president's invocation of a "second China shock" echoed concerns about the impact of Chinese industrial overcapacity and exports on European markets.

Source: South China Morning Post