Overview
- The College of European Commissioners debated China policy this week and concluded the existing trade and investment relationship “is not sustainable,” signaling a policy shift toward tougher trade defenses.
- Stéphane Séjourné said Brussels will widen the use of import quotas, raise tariffs and apply safeguard clauses at the sector level rather than only against individual firms or raw materials.
- Officials singled out chemicals, metals and clean technologies as the most vulnerable sectors and linked the recent surge in Chinese electric-vehicle exports to a large widening of the EU goods trade deficit.
- Beijing has publicly rejected the plans as protectionist and warned it will take countermeasures while proposing new bilateral consultation channels to try to manage differences.
- The Commission will now study and could speed up concrete measures in the coming months with discussions among member states and talks at upcoming G7 and EU leaders meetings that will shape timing and scope.