EU leaders must avoid lapsing into “China phobia” when they sketch out a plan for dealing with the economic superpower this month, said Bernd Lange, the chairman of the European Parliament’s trade committee.

The first substantial debate about the EU’s relationship with China is expected to take place at a Brussels summit this year, when EU leaders meet on 18 and 19 June.

“Closing the doors makes no sense, economically and politically, as well,” the senior German social democrat told Euractiv’s flagship newsletter Rapporteur in an interview.

He did, however, say there are “some problems” in the current relationship, citing Beijing’s undervaluation of its currency, unfair trade practices, and rising global car exports.

An EU official said the aim of the summit discussion will be to forge a “common understanding” about how to respond to unfair global business competition, “notably from international players such as China.”

An early draft of the European conclusions, however, makes no mention of China, suggesting leaders will only have a broader debate about “competitiveness and global economic challenges,” and discuss “global macroeconomic imbalances”.

Lange stressed that there are a litany of economic problems stemming from China. “What is really a major problem is the whole question of security and cybersecurity,” he added. “We should be more strict.”

He also said the EU must become less dependent on China for strategic imports, such as critical raw materials.

Times a’changin’

Lange, who took a trip to South Africa last week, said the way that China has “destroyed” the African nation’s textile industry has changed the calculus.

Pretoria thought for years that China was the ideal anti-colonial power, but countries that long sought non-alignment are rallying to the EU as a beacon of stability, even as the US upends global trade policy, he said.

Many countries, such as Indonesia, are rethinking “who is really reliable,” said Lange.

European commissioners held a closed-door discussion about China last week, stating that “the current state of the trade and investment relationship is not sustainable.”

Measures to counter China are being held back at the EU level by Germany and Spain, two countries with close trade ties to China.

EU diplomats and officials regard China’s soft power in trade as undermined by the country’s support for Russia, creating a difficult political climate for European leaders to visit Beijing.

(bw, cm)