CORRECTED: MNI BRIEF: EU To Warn On China Trade Situation

(Corrects name of Chinese premier)

European Commission President Ursula von der Leyen will warn Chinese Premier Li Qiang at a one-day summit in Beijing on July 24 that the state of trade relations is "unsustainable,” raising issues of China's industrial overcapacity, as well as lack of market access and free and fair competition, the official said. 

"The present situation is unsustainable. We need rebalancing," the official said.

The leaders will also discuss disputes over exports of Chinese electric vehicles, as well as China's investigation into EU dairy subsidies. 

While Chinese officials had initially hoped trade tensions with the U.S. would make the EU more amenable to closer ties with China, Brussels is playing down expectations of any immediate breakthroughs at the summit. The EU’s aim is more to "develop a dialogue that will lead to solutions in the short, if not immediate term," the official said. (See MNI: China To Hit Back Against US, Seek Europe Ties - Advisors)