Overview
- The European Commission this week described EU–China trade and investment relations as "not sustainable" and launched work on concrete measures to curb what it sees as unfair competition.
- Officials are discussing import quotas, additional tariffs to apply when quotas are breached, and policies to encourage companies to diversify supply chains away from single-source Chinese suppliers.
- German Economics Minister Katherina Reiche visited Beijing and Guangzhou and publicly promoted a reciprocity approach that seeks Chinese investment in Germany rather than broad decoupling.
- Large German firms and Mittelstand suppliers are deeply embedded in Chinese production, which officials say makes rapid disentanglement difficult and heightens risk to jobs in chemicals, steel, machinery and autos.
- The proposal has split EU capitals, with France, Italy, the Netherlands and Lithuania pressing for tougher action while final outcomes will depend on member-state agreement and talks with industry.