EU President Warns China Flooding Global Markets, Calls for Joint Action

European Commission President Ursula von der Leyen has warned China’s economic model poses a threat to global supply chains and the industrial base of many nations.

In her maiden address to Australian Parliament on March 24, von der Leyen said Beijing’s deliberate flooding of global markets with cheap products was something that needed to be confronted with a coordinated response.

“We cannot and will not absorb China’s export led growth model and its industrial overcapacity,” she said, noting that for the first time last year, every EU member state recorded a trade deficit with China.

She urged closer cooperation with Australia to counter these pressures, saying, “These are responses we can only devise together for both Europe and Australia.”

Her remarks came as Australia and the European Union signed a landmark agreement eliminating import duties on 98 percent of Australian exports to the bloc’s 27 member states, opening access to a market of around 450 million people.

Von der Leyen said dealing with the Chinese Communist Party (CCP) is a strategic priority, particularly in the field of critical minerals where China controls the bulk of the world’s processing facilities.

“We cannot be over dependent on any supplier for such crucial ingredients, and that is precisely why we need each other. Our security is your security, and with our new security and defence partnership, we have each other’s back,” von der Leyen told parliament.

In October 2025, at the G20, Beijing launched a “green minerals” alliance with developing nations, while the United States has been rallying allies and investing in extraction technologies to create a separate pipeline for the mineral.

Critical minerals are essential ingredients for modern technologies including smartphones, to jet planes, and microwaves.

Warning of Energy Dependence on Adversaries

Von der Leyen also pointed to Europe’s experience with energy dependence on other nations.

“Pain at the pump is hard for our citizens, and just another reminder that building our resilience is today’s job.”

She said the war in Ukraine forced Europe to rapidly cut reliance on Russian gas, describing it as a stark lesson in the risks of over-dependence.

“We know firsthand that the more you build homegrown energy, the sooner you get independent, and thus can shield yourself from energy price shocks.”

She highlighted climate change as a shared challenge, pointing to increasingly severe weather events across Europe and Australia, and welcomed Canberra’s consideration of joining Horizon Europe, the EU’s flagship research and innovation program.

Europe ‘Rearming And Preparing’

Von der Leyen also said Europe was undergoing a fundamental shift in its global outlook and strengthening defence.

“The Europe I am representing is very different to what you have known. It has been hard, but we finally got there today,” the president said.

She emphasised growing cooperation with Indo-Pacific partners, including Australia, in areas such as maritime security, cyber defence and advanced technologies.

Von der Leyen also praised Australia’s under-16 social media ban introduced in December 2025.

“We are watching closely your world leading social media ban as a mother of seven children and a grandmother of six, I feel acutely the responsibility of protecting our children,” she said, adding that several EU member states were considering similar steps, with expert panels already examining possible restrictions.

Leaders Welcome Deeper Ties

Prime Minister Anthony Albanese welcomed von der Leyen to parliament, describing her address as historic.

He called the Australia-EU free tradel agreement a “once in a generation achievement” that would deliver long-term economic benefits.

“This was a logical step for two natural partners, but as we know, it was not inevitable. It took hard work and it took constructive engagement, and it required both sides to see the bigger picture, the wider horizon of shared opportunity that is instinct that defines us and binds us.”

Opposition Leader Angus Taylor also endorsed closer ties, praising Europe’s support for Ukraine and backing the new security partnership.

“Australia steadfastly supports Ukraine too, as it strives for a strong peace, and as the European Parliament has declared: a threat to one democracy is a threat to every democracy. A failure to deter the enemies of democracy in Europe will embolden them the world over, including the Indo-Pacific, and that’s why the Coalition applauds the signing of the Australia-EU security and defence partnership.”