EU Trade Chief Details Tougher China Policy Amid Retaliation Threat
The European Union is set to intensify its trade approach regarding China, as Trade Chief Maroš Šefčovič presents a plan to address a new 'China shock' that poses risks to European industries. The EU is contemplating the creation of a new tool aimed at urging companies in essential sectors to broaden their supplier base in terms of quantity and geographical diversity. Moreover, Šefčovič intends to enhance the application of safeguard measures in industries facing significant challenges due to Chinese overproduction, including chemicals and machinery. These safeguards are more rapid and comprehensive than anti-dumping or anti-subsidy investigations, making it challenging for opposing member states to impede them, as only a qualified majority is needed to block such measures. China has promised to retaliate, heightening tensions between the two economic powers.
Key facts
- The EU is developing a tougher trade policy towards China.
- Trade Chief Maroš Šefčovič is leading the initiative.
- The policy aims to counter a new 'China shock' to EU industries.
- A new instrument may compel companies in critical sectors to diversify suppliers.
- Safeguard measures will be ramped up in sectors like chemicals and machinery.
- Safeguards are faster and broader than anti-dumping or anti-subsidy probes.
- A qualified majority of EU capitals is needed to block safeguard measures.
- China has vowed retaliation against the EU's actions.
Entities
Institutions
- European Union
- European Commission
Locations
- Brussels
- Belgium
- China