European Union’s top foreign policy official, Josep Borrell, spoke with Nvidia’s CEO, Huang Renxun, on Tuesday (May 14) after meeting with the technology and artificial intelligence giant at Nvidia’s headquarters. He then sat down for an interview with Foreign Policy magazine, discussing topics such as tech regulation, the EU, the US, and its relationship with China.
Borrell mentioned that he does not plan to participate in the upcoming EU election next month, as he will be stepping down from his position.
According to Borrell, Chinese leader Xi Jinping’s recent visit to Europe had motives beyond a simple diplomatic visit. He expressed concerns about China’s attempts to sow division within the EU and to narrow the gap with Eastern European countries.
As analyzed by experts, Xi Jinping’s European tour has heightened tensions between Europe and China.
Borrell highlighted Hungary and EU candidate country Serbia’s close ties with China to attract investments, compared to the situation in France where concerns over competition in electric vehicle production were raised despite Xi Jinping’s positive reception.
Regarding China’s overcapacity in electric vehicle production, Borrell emphasized the structural imbalance in China’s economy, leading to weak internal demand in relation to production capacity, necessitating the export of excess capacity. He emphasized the need for tariffs to address this issue.
On May 14, US President Biden announced increased tariffs on Chinese imports, including new energy products like electric cars, batteries, chips, and medical products. Borrell warned that if the EU does not align with the US in imposing high tariffs, Chinese electric vehicles may flood the European market.
The EU’s response to the chain reaction caused by the US’s significant tariff increase on China has become a focal point of external attention.
Borrell reiterated the EU’s stance on the global market saturation of cheap Chinese solar panels and coal, which has weakened other countries’ clean energy industries. He noted the dependence of Europe’s solar panel supply on China and how the automotive industry, a core part of Europe’s industrial capacity, is facing a similar threat.
Additionally, Borrell stressed the importance of regulatory oversight in the tech industry, acknowledging previous shortcomings in understanding technological trends, particularly in areas like electric vehicles and artificial intelligence.
In recent years, the EU has enacted various regulations and acts targeting the tech industry, such as the Digital Service Act, Digital Markets Act, and European Chips Act.
While acknowledging the alliance between Europe and the US against threats posed by China, Borrell also highlighted the distinct interests each side holds. He underscored the need for coordination on policies related to Chinese technology and trade, noting the establishment of a Trade and Tech Commission in the EU for this purpose.
Borrell emphasized the significance of managing the implications within the US-China-EU triangle, voicing his stance against Europe becoming a casualty or compromising party in the US-China rivalry. He underscored the importance of avoiding such scenarios.