Paris/Brussels, (Unib Rashid) – On 27 August 2026, Ursula von der Leyen, President of the European Commission, addressed the French Entrepreneurs’ Summit in Paris. Her central message was that Europe must rebuild its industrial strength, reduce dangerous foreign dependencies and regain control over its economic future.

One of her strongest warnings concerned Europe’s increasingly unbalanced economic relationship with China. She stated that EU imports from China have increased by 45% over the past five years, while European exports to China are declining. The EU’s trade deficit in goods with China reached almost €360 billion in 2025—equivalent to nearly €1 billion every day—and has continued to increase during 2026. According to her, all 27 EU Member States are now running trade deficits with China.

However, her warning went far beyond the trade deficit. Europe depends on China for more than 80% of several critical raw materials and for over 90% of certain rare-earth elements. These materials are essential for batteries, semiconductors, electric vehicles, renewable-energy systems, defence equipment and other advanced technologies.

Courtesy: euronews

Von der Leyen warned that China could use this strategic dependence as economic and political leverage against Europe by restricting, delaying or controlling access to essential supplies. Europe has already seen how such dependencies can become instruments of pressure. Therefore, the EU must urgently diversify its suppliers, increase domestic production, expand recycling capabilities and establish strategic reserves.

She also argued that European companies are not competing on equal terms because Chinese manufacturers can receive state support several times greater than that available to comparable companies in OECD countries. Her proposed policy is “de-risking, not decoupling”: Europe does not want to end trade with China, but it will no longer accept unfair competition or allow its strategically important industries to disappear.

She outlined six major priorities for restoring European competitiveness:

1. Reduce bureaucracy by cutting administrative burdens by 25% for all businesses and by 35% for small and medium-sized companies by 2029.
2. Mobilise European investment by directing more of the €10 trillion held in household bank savings towards businesses, industry and innovation—potentially unlocking €470 billion in additional investment.
3. Complete the European Single Market and introduce an “EU Inc.” structure that could allow a European company to be established online within 48 hours for less than €100.
4. Lower European energy prices, which remain two to three times higher than those in the United States and China, while expanding domestically produced renewable and nuclear energy.
5. Strengthen Europe’s position in artificial intelligence by investing €20 billion in AI gigafactories and controlling the complete technological chain—from computing power and semiconductors to AI models and industrial applications.
6. Keep Europe open to international trade while demanding reciprocity, fair competition and diversified supply chains.

Her overall message was clear: Europe must once again become a continent that produces, invests and protects. European independence does not mean isolation. It means possessing enough industrial, financial, energy and technological strength to make independent decisions instead of being controlled by its dependence on other global powers.