The EU-China trade war: what if Beijing hits back?

The EU-China trade war: what if Beijing hits back?

EU leaders are increasingly sounding the alarm over China’s dominance of green tech and its state-backed industrial model. As Brussels searches for ways to protect Europe’s industrial base, the temptation is to strike hard in response, through the use of aggressive trade measures and an expansion of the EU’s trade-defence and industrial-policy toolbox.  But an aggressive response risks provoking retaliation from the EU’s second-largest trading p…

The EU Shouldn't Fight China's Protectionism with More Protectionism

In recent months, the debate on the EU’s trade deficit with China has intensified. In May, the EU’s 12-month rolling trade deficit with the country reached 376 billion euro in May, according to Eurostat, which is 8% higher than a year earlier. In 2025, for the first time, every single EU member state had a trade deficit with Beijing. In response, the European commission and a growing group of EU member states are calling for stronger measures ag…