Major EU countries push for tougher China policy ahead of Brussels debate

A group of influential European Union member states is urging Brussels to adopt a more stringent trade policy toward China. The coalition, including Spain, Italy, the Netherlands, France, and Lithuania, is pushing for measures to combat what they describe as China's "systemic and structural industrial overcapacity."

These nations are calling for a more aggressive approach, including the expedited implementation of emergency tariffs, the expansion of safeguard measures, and the introduction of new powers to prevent circumvention of EU trade rules. This joint paper, circulated ahead of a significant EU debate on China policy, signals a growing desire among key member states for a tougher stance against Chinese economic practices.

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the bloc must respond more aggressively to “systemic and structural industrial overcapacity”

The European Commission is currently preparing for a policy orientation debate scheduled for Friday. This discussion is intended to chart a new course for the EU's relationship with China, addressing increasing concerns from European governments and industries about the economic pressure exerted by Chinese competition. The proposed measures aim to provide more robust tools to protect European industries from unfair competition.

The paper, reportedly not yet public, advocates for a more proactive use of EU safeguard measures. Instead of relying solely on product-specific anti-dumping cases, the proposal favors sector-wide interventions when import surges threaten local industries. These safeguards, previously used sparingly, could now be applied more broadly to address systemic issues. The proposal also floats the idea of a new "resilience tool" to be activated when European supply chains become overly concentrated, a concern particularly relevant for countries like the Netherlands, home to critical technology firms.

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activated when European supply sources are concentrated beyond a specified threshold