(Bloomberg) -- Bundesbank President Joachim Nagel said European Union-China relations should be “fair” and require a “level playing field.”

Speaking in Frankfurt, he referred to European Commission President Ursula von der Leyen, who on Monday met China’s Xi Jinping and said Europe is ready to use all the tools available to defend its economies if China fails to offer fair access to its markets.

The EU is becoming tougher on trade relations with China, echoing US concerns about state-fueled overcapacity in green industry. The rhetorical shift has already been put into practice with the EU launching a probe into subsidies for Chinese electric vehicles in the fall of 2023 that could see new tariffs introduced by July.

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