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EU Considers New Defense Measures and Trade Restrictions Amid Rising Concerns Over Chinese Influence

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On May 29, EU executives were scheduled to discuss bolstering Europe’s trade defenses against Chinese competition, amid rising calls for stricter measures. Experts warn of a "China shock 2.0" as an influx of inexpensive Chinese goods threatens manufacturers worldwide and enlarges trade deficits. The EU’s goods trade deficit with China reached approximately €360 billion in 2025.

    1. The current trade and investment relationship is not sustainable.
    2. As economic and security interests become ever more intertwined, both dimensions will require a more robust response.
    3. China is a critical partner, and engagement and dialogue will continue. At the same time, the current state of the trade and investment relationship is not sustainable.
    1. China currently accounts for 30 percent of global production but only 13 percent of consumption. It is an imbalance that the world simply cannot swallow.
    1. I notice that quite a few European countries, unfortunately, risk using the China issue to push for general protectionist barriers.
    1. The US has an engagement with China, Canada has an engagement with China. Everyone is having an engagement with China. I think in my view … we need to find a way to make sure that we are properly respected by China when we have that engagement.
    2. I think that sometimes there's a little bit of a tendency to sound very tough, but then not to act tough, and I don't think that is a clever way to handle things.
    1. The EU's economic and trade policy toward China is going further and further down a radical path.