On Saturday, Beijing cautioned the European Union against implementing fresh trade barriers, just as Brussels prepares a major offensive against Chinese industrial overcapacity to protect the future of European manufacturing.
The Chinese Ministry of Commerce declared that if the EU persists with unilateral, discriminatory restrictions, China will react firmly to defend its economic interests. However, Beijing noted that communication channels remain open, with both sides discussing a potential trade and investment consultation mechanism. This statement followed a high-level EU meeting on Friday dedicated to countering China’s market dominance.
European Commission President Ursula von der Leyen led a policy debate with her commissioners to address the widening trade imbalance. A massive influx of Chinese goods—including electric vehicles, solar panels, and textiles—is heavily undercutting European businesses, triggering factory closures and layoffs. Following the meeting, the Commission stated that the current economic relationship is unsustainable, emphasizing that intertwining economic and security interests demands a more aggressive, unified approach.
Statistical data reveals that the EU’s trade deficit with China grew from €312 billion in 2024 to €360 billion last year, with trade figures showing an even sharper divergence in the opening quarter of 2026.
While France and several other member states have long championed defensive measures, Germany had consistently warned against provoking a trade war. However, Berlin executed a major policy shift on Friday, signaling its readiness for tougher EU action against the surge of Chinese imports. Speaking to POLITICO, EU Industrial Strategy Commissioner Stéphane Séjourné noted that while dialogue is essential, Europe cannot fall victim to a predatory strategy that guts its own industry, making new political resolve and regulatory tools vital.
