EU members unite behind tough new China trade strategy ahead of Brussels summit

A broad coalition of EU member states, ranging from free marketeers to long-term interventionists, is converging on the need for urgent action to prevent Chinese-driven European deindustrialisation ahead of a key summit in Brussels. Multiple sources said on Wednesday that members now support developing a tough new trade strategy involving multiple new instruments and more rapid-fire, strategic use of existing weapons. A senior diplomat from a supportive member state, speaking on condition of anonymity, stated that different strands are being considered, including a diversification instrument and a more protective instrument, and that the European Commission needs guidance from leaders to find a compromise. The diplomat also highlighted the link between overcapacity and subsidies, noting that if the EU cannot properly investigate what subsidies third countries like China are using, it must defend itself against them.