European Union leaders are urging Brussels to develop new trade instruments to counter China's economic influence and reduce dependence. The move follows concerns over unfair trade practices and a widening trade deficit, with options including tariffs and diversification measures.
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EU Leaders Seek Stronger Trade Tools Against China's Economic Influence
IN SHORT
European Union leaders are urging Brussels to develop new trade instruments to counter China's economic influence and reduce dependence. The move follows concerns over unfair trade practices and a widening trade deficit, with options including tariffs and diversification measures.
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Frequently asked questions
The main concerns are China's economic influence, unfair trade practices, and the growing dependence of EU economies on Chinese imports, particularly in light of Chinese overcapacity.
The bilateral trade deficit in goods between the EU and China hit €360 billion last year and continues to grow.
Options include wider use of import quotas (safeguards), a new diversification instrument requiring companies to source inputs from multiple suppliers, and an overcapacity instrument that could impose tariffs.
What Happens Next
01EU leaders will discuss the strategy toward China over dinner.
02The European Commission will review current trade defense mechanisms and consider new instruments.
03A meeting between China's Commerce Minister Wang Wentao and EU trade chief Maroš Šefčovič is scheduled for the end of June.