Von der Leyen blasts China's 'blackmail' in appeal to Trump at G7

Euronews

4 hours ago

Ursula von der Leyen used her participation at the G7 summit in Kananaskis, Canada, to warn against a "new China shock" and denounce Beijing for perpetuating what she called a "pattern of dominance, dependency and blackmail" vis-à-vis its trading partners, in language seemingly designed to appeal to Donald Trump's agenda.
China holds a quasi-monopolistic position over so-called rare earths, the 17 metallic elements that are crucial for advanced technologies. The country commands roughly 60% of the world's supply and 90% of the processing and refining capacity.
"China is using this quasi-monopoly not only as a bargaining chip, but also weaponising it to undermine competitors in key industries," the president of the European Commission said during one of the meeting's thematic sessions.
"We all witnessed the cost and consequences of China's coercion through export restrictions," she added, referring to Beijing's recent decision to curb sales of seven types of rare earth minerals, a situation Brussels had described as "alarming".
The move was a response to Trump's sweeping tariffs, which caused a rapid escalation of tit-for-tat measures with China. Last week, the two sides announced a detente meant to bring down the spiralling duties and ease the export restrictions.
"Relationship [with China] is excellent!" Trump said.
But on Monday, von der Leyen sought to tap into the US-China rivalry to make the case for a "united" G7 front to counter Beijing's dominance with an "alternative network of trusted suppliers" and fresh investments in extraction and refining.
"Even if there are signals that China may loosen its restrictions, the threat remains. But there are other distortions. We are seeing a new 'China shock'," she said.
"A common G7 response increases our leverage – pressuring China to take more responsibility for the impact of its state-led growth model."
Von der Leyen also blasted China for flooding global markets with "subsidised overcapacity that its market cannot absorb", name-checking the dispute over China-made electric vehicles that her Commission considers to be artificially cheaper.
During another session at the summit, von der Leyen went further and declared that the source of "the biggest collective problem" in the global trading system dated back to China's accession to the World Trade Organization (WTO) in 2001.
Beijing's entry into the WTO has been controversial, as it opened international markets to the mass production of low-cost exports. The admission is linked to the first "China shock" and a decline in manufacturing jobs in both Europe and the US.
"China still defines itself as a developing country. This cannot be. China has largely shown that it unwillingness to live within the constraints of the rules-based international system," von der Leyen said.
"While others opened their market, China focused (on) undercutting intellectual property protections, massive subsidies with the aim to dominate global manufacturing and supply chains," she went on. "This is not market competition – it is distortion with intent."
Von der Leyen's hard-line approach echoes many of the grievances voiced by the Trump administration, which is bent on curbing China's rise as an economic superpower and bringing back manufacturing jobs of strategic importance. It also tampers down growing speculation of a EU-China reset ahead of a bilateral summit in late July.
Von der Leyen's interventions were peppered with direct appeals to Trump, who was also present in the room, even if he left the summit one day earlier due to the military escalation between Israel and Iran.
"Donald is right – there is a serious problem," she said, referring to China.
In the immediate weeks following Trump's inauguration, von der Leyen and her team struggled to establish an open line to the White House, causing alarm in Brussels due to his disruptive positions on Russia, Ukraine, Greenland and the Middle East.
Trump's self-styled "reciprocal tariffs" in early April opened a 90-day window of opportunity to strike a EU-US trade deal and yielded the long-awaited phone call between the two leaders, in which they agreed to fast-track negotiations.
Still, talks are believed to be riddled with stark divergence and have made limited progress ahead of the 9 July deadline. Officials in the Trump administration have suggested the cut-off date might slip to allow greater space for negotiations.
"On trade, we instructed the teams to accelerate their work to strike a good and fair deal," von der Leyen said on social media alongside a picture with Trump.
"Let's get it done."
US officials estimate that Iran possesses the largest arsenal of ballistic missiles in the Middle East, with over 3,000 units. Some of these high-speed missiles can reach Israeli territory in as little as 15 minutes.
However, only medium-range ballistic missiles—those capable of travelling over 1,000 km—can strike Israel from Iran. According to Iran's semi-official news agency ISNA, the country has nine different missile types with that capability.
'Most estimates I have seen put the number of Iranian missiles capable of hitting Israel closer to 2,000,' Dan Caldwell, a former senior adviser to US Defence Secretary Pete Hegseth, posted on X this week.
While much of Iran's missile arsenal remains classified, ISNA published a graphic in April last year showcasing some of its key weapons. These included the Sejil, which can reach speeds of over 17,000 km/h and has a range of 2,500 km; the Kheibar, with a 2,000 km range; and the Haj Qasem, with a range of 1,400 km.
A recent threat assessment by the US military found that Iran fields a 'large quantity' of ballistic missiles, cruise missiles, and drones capable of striking targets across the region. Israel's Prime Minister Benjamin Netanyahu claimed Iran intends to continue expanding this capacity.
In a video statement on Friday, Netanyahu said Iran had accelerated production and was aiming to manufacture 300 ballistic missiles per month—potentially producing 20,000 rockets over the next six years.
According to the latest estimates from SIPRI's Military Balance, Israel's defence budget in 2023 was more than double that of Iran—$27.5 billion compared to $10.3 billion.
Iran's missile programme draws heavily from North Korean and Russian designs, and has reportedly benefited from Chinese assistance, according to the Arms Control Association, a Washington-based non-profit.
It now has 610,000 active personnel and 350,000 reserves with the addition of the Islamic Revolutionary Guard Corps (IRGC). Iran also has 334 combat-capable aircraft, as well as air defence systems such as the Russian S-300, which has limited capabilities when it comes to defending against ballistic missiles.
Israel, for its part, has developed one of the most advanced missile arsenals in the world, combining decades of homegrown innovation with strong support from the US.
At the top end of this arsenal are long-range ballistic missiles such as the Jericho II and Jericho III. While the exact numbers are classified, the Jericho II is believed to be nuclear-capable with a range of around 1,500 kilometres, while the Jericho III may be able to reach targets over 6,000 kilometres away, giving Israel a strategic deterrent that extends far beyond its borders.
Alongside these long-range systems, Israel has hundreds of short- and medium-range missiles designed for quick, precise strikes. These include the Predator Hawk, which can hit targets up to 300 kilometres away, and cruise missiles such as the Popeye and the Delilah, which are launched from the air or sea.
In practice, each incoming missile usually requires its own interceptor missile to neutralise it. For example, if Iran were to launch 100 missiles, Israel would need to fire almost the same number of interceptors to stop them.
'The types of interceptors that are required to shoot down ballistic missiles are expensive and difficult to produce in mass quantities,' Dan Caldwell posted on X this week, adding that he think it likely that Israel and the US 'are going to have start rationing their interceptors soon (if they haven't already) - further increasing the effectiveness of even smaller Iranian barrages.'
Its multibillion-dollar military arsenal also includes around 340 combat aircraft—among them advanced US-made F-35 stealth fighters—46 helicopters, a combined 634,500 active and reserve personnel, and a multilayered air defence system.
Approximately 370 ballistic missiles have been launched by Iran at Israel since the conflict began on Friday, claims the Israel Defence Forces (IDF). On Saturday, an Israeli military official said that the country's air defence shield had an '80 to 90% success rate', while stressing that 'no system is 100% effective'—implying that some Iranian missiles had breached Israeli air defences, Reuters reported.
The Iron Dome, Israel's well-known air defence system, is just one component of a broader system designed to counter a range of aerial threats, from rockets and missiles to drones and aircraft.
The first layer, the Iron Dome, intercepts short-range rockets and artillery shells—typically within 70 kilometres—and is primarily used to protect civilian areas.
Next is David's Sling, which targets medium-range ballistic missiles launched from distances between 100 and 200 kilometres.
Finally, the Arrow system—comprising Arrow 2 and Arrow 3—provides long-range defence. Arrow 2 is designed to intercept missiles in the upper atmosphere, roughly 50 kilometres above ground and within a 100-kilometre radius. Arrow 3 pushes that boundary into space, capable of intercepting missiles at distances of up to 2,400 kilometres.
Israel's Iron Dome, David's Sling and Arrow systems are all missile interceptors. This means that they are not designed to launch attacks, but rather to detect and destroy incoming missiles before they reach their targets.
In practice, each incoming missile usually requires its own interceptor missile to neutralise it. For example, if Iran were to launch 100 missiles, Israel would likely need to fire almost 100 interceptors to stop them — one for each threat.
However, despite all these protection layers, analysts argue that Israel's decision to target the heart of the Iranian regime is raising the stakes, as the latter could respond by striking other targets in neighbouring countries, thus escalating the conflict in the region, or by attempting to block trade in the Persian Gulf.
'If Israel continues to attack its nuclear and military facilities, Iran has a strong incentive to put together a rudimentary nuclear weapon as quickly as it can to deter any further damage of its facilities and demonstrate that it is capable of defending its sovereignty,' senior research fellow at Chatham House Dr Marion Messmer wrote in an analysis.