NNA - European Commission president Ursula von der Leyen discussed with China's Premier Li Qiang the potential oversupply of cheap Chinese goods to the EU, as newly-imposed U.S. tariffs disrupt global trade.

"The President underscored the vital importance of stability and predictability for the global economy," the commission said in a statement on Tuesday following a phone call between the two officials. It also said that von der Leyen "stressed the responsibility of Europe and China, as two of world's largest markets, to support a strong reformed trading system, free, fair and founded on a level playing field."

"The President called for a negotiated resolution to the current situation, emphasising the need to avoid further escalation," it said.

The EU--also dealing with Chinese trade tensions--is reeling from fresh tariffs President Trump imposed on goods coming from the bloc last week. U.S. tariffs on steel and aluminum imports already went into effect last month and additional tariffs on global automotive imports also went into effect last week. Now, the EU has to grapple with a 20% so-called reciprocal tariff on all exported goods.

The commission said Von der Leyen emphasised China's role in addressing any trade diversion caused by tariffs including sectors already hit by global overcapacity, and discussed setting up a mechanism for tracking trade diversions to address them.--agencies

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