EU leaders will discuss on Thursday whether the bloc needs new, strengthened trade defense mechanisms to curb the surge in Chinese exports, which Brussels considers an existential threat to European industry and jobs. This was reported by Agence France-Presse, according to UNN.
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There is a growing consensus within the European Union that it is too dependent on China, and Brussels fears this makes it vulnerable to potential economic pressure and supply shocks.
The bloc's trade deficit in goods reached approximately 360 billion euros ($417 billion) last year, meaning that Chinese exports significantly exceeded imports into the EU.
Our trade relationship with China has reached a point that requires a reset. Not confrontation, but balancing
While EU capitals agree on the general diagnosis of the problem with China, their positions diverge on the treatment.
One way to strengthen the EU's trade toolkit could be the creation of a new mechanism to introduce sectoral tariffs, for example in the chemical or "green" industries — modeled after the policies of President Donald Trump.
French President Emmanuel Macron last month called for a "European equivalent of Section 301" — a trade tool Trump used to impose sweeping tariffs — stating that "Europe's sovereignty is at risk."
Germany has so far maintained a cautious stance, as its economy is more exposed to the risk of potential retaliatory measures, while Spain has sought to avoid tension in pursuit of Chinese investment.
As the publication notes, Berlin seems to be starting to lean toward the French position.
A German official stated that Berlin is "open" to new tools if they are necessary, provided they are "not targeted at specific recipients."
Concerns about China's dominance are not limited to the EU.
Fears are growing in the West over Beijing's control of the market for rare earth minerals used in consumer electronics, and the China issue was also discussed during G7 leaders' talks in France this week.
A real alarm signal was China's introduction of export controls on rare earth elements last year, which sent shocks through global supply chains.
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