The Netherlands and the EU should press for a trade deal with China to address imbalances, but must be ready to consider measures that could invite retaliation – and bear the associated costs – according to members of a council that advises the Dutch government.
The recommendation marks a significant shift in mindset for one of the European Union’s most committed free-trade nations as the next round of China-EU trade talks in October approaches.
Both sides traded fire again this week, with EU trade chief Maros Sefcovic urging Beijing on Wednesday to deliver concrete results by October or face “harsher measures”, and China’s Ministry of Commerce hitting back on Thursday by urging Brussels to stop “threatening market closure at every turn”.
“It would be quite important to get an agreement with China that will be beneficial for both,” Ab Klink, a member of the Netherlands Scientific Council for Government Policy and a former health minister, told the South China Morning Post on Monday. “On the other hand, if it’s impossible to reach an agreement, then you have to think as the European Union about the next options.”
Klink chaired the project group behind a report that the council presented to the Dutch government on Thursday. Focusing on “rebalancing trade” and “boosting innovation”, the report urged the Netherlands to reduce its economic dependencies in an era of increasing geopoliticisation.