EU leaders agreed on Thursday to strengthen trade defenses against a surge of Chinese exports, which Brussels views as a threat to European industry. The 27 EU capitals agreed on the economic threat posed by China’s trade policy if left unchecked, particularly as the bloc’s goods trade deficit reached approximately 360 billion euros last year.
This move aligns with recent pledges from the Group of Seven industrial nations to diversify away from China. The G7's ambitious target adds momentum to the European Union’s own push to counter a growing trade imbalance with the world’s biggest export engine.
However, European officials are navigating a catch-22, seeking to strike a balance between addressing trade imbalances and avoiding a damaging conflict with the world’s No. 2 economy. While aiming to maintain constructive dialogue, the EU faces warnings from China that it will fight any moves to protect European industries and will expand its own policy toolkit in response.