The European Commission adopted a more stringent stance on trade ties with China during a rare debate in Brussels on Friday.
In a presentation, EU trade chief Maros Sefcovic argued that the EU must take stronger measures to protect its industries from what has been described as a new ‘China shock.’ He suggested the possible creation of a new tool requiring firms in critical sectors to diversify their supplier base across more countries and locations.
Šefčovič is also expected to increase the use of trade safeguard measures in industries facing pressure from Chinese overcapacity, particularly in chemicals and machinery. These safeguards are faster and broader than anti-dumping or anti-subsidy investigations and are harder for dissenting member states to block, as they require a qualified majority to be stopped.
European Commission President Ursula von der Leyen backed a tougher trade stance, as Sefcovic warned of severe industrial decline and job losses. Recommendations will be taken to the European Council summit on June 18–19, with China high on the agenda.
Ahead of the summit, von der Leyen is also expected to consult with leaders at the Group of Seven (G7) meeting in Evian, France, where discussions will focus on global economic imbalances. The outcome of the European Council will be key in deciding whether the EU shifts its China strategy.
While countries such as France, Italy, and the Netherlands are pushing for a firmer approach, Germany’s position remains uncertain.
Chinese Commerce Minister Wang Wentao is expected to meet Šefčovič in Brussels on June 29, while vice-minister Ling Ji will hold talks in the Belgian capital three weeks earlier.
Meanwhile, a coalition of 23 EU industry associations has urged a more assertive trade policy to address what they describe as unfair practices and structural overcapacity in non-market economies. The groups, representing sectors such as metals, chemicals, cement, fertilizers, solar, batteries, and tires, called for quicker trade investigations, a new WTO-compatible tool, and strategic use of the EU’s foreign subsidies regulation.
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