Stories
Germany and France Push for EU Power to Cut Off China Amid Trade Tensions
- •Germany and France sent a letter urging the European Union to adopt new powers that could cut countries like China off from the bloc's single market.
- •The proposal aims to give the European Commission tools to react decisively against unfair trade practices and reduce foreign supply chain dependencies.
- •Beijing has previously warned it will respond to new discriminatory trade restrictions and recently launched an anti-dumping investigation into European chemicals.
- •The Franco-German initiative calls for broader sector-wide investigations into heavily subsidized imports such as chemicals, plastics, and hybrid cars.
- •EU Trade Commissioner Maros Sefcovic is traveling to China for talks ahead of an upcoming EU summit where leaders will discuss trade imbalances.
Key Questions Answered
Germany and France sent a letter to European Commission President Ursula von der Leyen urging the EU to adopt a new instrument that could enforce an immediate cut-off from the internal market for countries like China, as well as reduce foreign supply chain dependencies.
China's Commerce Ministry warned that the EU proposal is a protectionist and unilateralist measure that could disrupt trade and hurt mutual trust. Additionally, Beijing launched an anti-dumping investigation into a European chemical product and warned it would take a resolute response to protect its industries.
The EU's trade deficit with China reached €360.6 billion ($404 billion) last year and continued to widen in the first half of 2026, prompting EU leaders to direct the commission to reengage with Beijing.
