EU Nations Ready to Battle ‘China Shock 2.0’ with Tough New Strategy
Leaders want new trade tools as Chinese subsidies and overcapacity squeeze European producers, with OECD estimates putting state support at 3 to 9 times peers.
- On Thursday, leaders from the European Union's 27 member states met in Brussels to discuss "global macroeconomic imbalances and their implications for Europe's competitiveness and prosperity," diplomatic shorthand for China policy.
- Economists Sander Tordoir and Brad Setser reported last month a new China shock is straining markets, particularly in Germany, where Chinese companies receive between three and nine times more state support than competitors.
- French President Emmanuel Macron proposed a "Section 301" instrument to counter unfair practices, arguing that while "China is a problem," the tool should be "country neutral."
- Although the meeting produced no written outcomes, officials said the council provided "very powerful" guidance to the European Commission, while leaders remain cautious of retaliation from Beijing.
- A broad coalition now supports developing a robust trade strategy with new defensive instruments, and European Commission president Ursula von der Leyen is keen to expand the bloc's arsenal of trade tools.
12 Articles
12 Articles
BT
Kristeligt DagbladWhen someone threatens, you must dare to fight back, says Mette Frederiksen before discussion about China at the summit.
As in the past, the relationship with China cannot continue – all EU leaders agree on this. However, there is a dispute about the right medicine.
EU government leaders are meeting in Brussels today to discuss a strategy to protect European industry against Chinese competition.
Germany, which has so far been a strong advocate of dialogue with the Asian giant, is ready to support a new EU trade defence instrument that allows for the rapid imposition of tariffs and quotas. More information: Sánchez disconcerts his partners with his approach to China: "He is far removed from the EU's majority position"
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