Key facts
- EU leaders backed a potential trade "kill switch" for Chinese goods.
- The bilateral trade deficit with China reached a record.
- A proposal for the "kill switch" is requested by year-end.
- China's exports surged, exceeding expectations.
European Union leaders have supported the creation of a tool that could potentially block Chinese goods, as a significant increase in low-cost imports has led to a record bilateral trade deficit. European Commission President Ursula von der Leyen signaled to EU leaders at a meeting in Brussels on Thursday that officials could begin developing a trade "kill switch." The leaders requested a proposal for this tool by the end of the year. Meanwhile, China's exports have surged, surpassing expectations.