The European Union’s (EU) trade policy towards China has once again gained weight in the European debate, at a time when Brussels seeks to balance economic openness, industry protection and less dependence on external supply chains. The theme crosses trade, energy, technology and essential raw materials for strategic sectors.
In this context, the European Commission (EC) is studying a tougher response to the entry of Chinese products into the European market, especially when they arrive in large volumes and at prices that could put pressure on the bloc’s industry, according to the portal specialized in economics and business.
The Commission itself recognizes that relations with China have become “increasingly complex” and describes Beijing as a partner, economic competitor and systemic rival.
Brussels wants to curb trade imbalances
According to information provided by the international press, cited by the same source, the Commission’s trade services were instructed to prepare a more assertive trade defense policy. At issue is the possibility of using safeguard investigations more frequently, used when a significant increase in imports threatens to cause serious harm to European producers.
The EC explains that these instruments serve to protect European production in the face of distortions in international trade, maintaining the rules of the World Trade Organization as a basis for action. Brussels also emphasizes that trade defense must restore fair competition conditions, without abandoning the principle of open markets.
What are safeguarding investigations?
Safeguard investigations analyze the evolution of imports, the prices charged and the possible impact on EU producers. When there is a risk of serious injury, measures such as tariff quotas, import limits or additional duties may be applied.
These measures, however, have strict rules. Unlike the rights applied against unfair practices, safeguards are not only aimed at a specific country and must apply to imports in a non-discriminatory manner, with exceptions provided for some developing countries with reduced quotas.
Weight of Chinese overproduction
Brussels’ concern is not limited to trade figures. The EC states that Chinese industrial policies, marked by strong support for the manufacturing sector, have created excess production capacity, with negative effects for several members of the World Trade Organization.
In practice, this means that Chinese companies can produce much more than the domestic market can absorb, then placing part of this production on international markets. For European sectors such as automobiles, clean technologies, chemicals, steel or industrial equipment, this pressure can translate into a loss of competitiveness, production cuts and job destruction.
Trade deficit helps explain the squeeze
The latest Eurostat data shows the scale of the imbalance. In 2025, the EU exported 199.6 billion euros worth of goods to China and imported 559.4 billion, resulting in a trade deficit of 359.8 billion euros.
Compared to 2024, European exports to China fell by 6.5%, while imports increased by 6.4%. For Brussels, these numbers reinforce the need to reduce excessive dependencies and protect sectors considered essential for European economic autonomy.
Critical raw materials worry Europe
Another sensitive point involves critical raw materials. The EC has warned about Chinese controls on the export of raw materials and technologies, which it considers difficult to justify solely on dual-use grounds and which could affect European supply chains.
The topic is especially important for batteries, electric cars, wind turbines, solar panels, defense and digital technologies. The European Critical Raw Materials Act was created precisely to strengthen European capacity, diversify suppliers and reduce the dependence of a single country on strategic materials.
European industry at the center of the response
Brussels has also come forward with proposals to reinforce production within the EU. The Industrial Accelerator Act aims to increase demand for technologies and products made in Europe, especially in sectors such as steel, cement, aluminum, automotive and clean technologies.
The proposal also provides for rules for large foreign investments in strategic sectors. According to the Commission, investments of at least 100 million euros made by companies outside the EU, with a strong global weight in areas such as electric vehicles, batteries, solar energy or critical raw materials, will have to generate real value in the European market.
Cybersecurity also enters the equation
The technological front is another point of tension. The EU has launched a new tool to assess and reduce risks in information and communications technology supply chains, developed by Member States with support from the Commission and the European cybersecurity agency, ENISA.
This debate could have an impact on sectors such as telecommunications, energy, transport and critical infrastructure. Although the public discussion is often associated with Chinese suppliers, official documents mainly talk about risk assessment, supply chain security and suppliers from third countries.
Political decision is not yet finalized
Despite the toughening tone, the European Union will have to strike a delicate balance, according to Executive Digest. Any new trade measure will have to respect international rules, avoid accusations of discrimination and gather sufficient support among member states.
The topic should continue on the table in the coming weeks. The annotated agenda of the European Council on June 18th and 19th already includes a discussion on competitiveness, strategic autonomy and global macroeconomic imbalances, in a challenging geoeconomic context.
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