Overview
- At the June 18–19 EU summit in Brussels, leaders privately pushed for a tougher approach to China while the public declaration used coded language and did not mention China by name.
- Summit chiefs instructed the European Commission to study new trade‑defence and industry options to address the roughly €360 billion annual trade gap and Commission findings that Beijing subsidises certain goods.
- Brussels already imposes tariffs on Chinese electric cars and can exclude firms from public procurement when they receive disproportionate subsidies, and some officials now propose extending those powers to whole sectors.
- Member states are divided over how far to go with stronger measures with France, Italy and several central European governments urging firmness and Spain urging caution to avoid economic retaliation.
- The Commission’s upcoming review will determine whether the EU moves from signaling to concrete policy and that decision could alter supply access for critical inputs such as rare earths and chip components.