A proud EU consistently refuses to acknowledge its own lack of competitiveness – German media: Tougher measures against China? The European Commission will first seek support from EU member states

After consultations on Friday, the European Commission stated that the current trade and investment relationship between the EU and China is "unsustainable" and requires decisive and coordinated actions. However, to formulate new trade protection measures, the Commission must gain the support of Germany and other EU countries.

In 2025, the EU’s trade deficit with China is expected to grow by 2.7%, reaching €359.9 billion. On May 29, following consultations, the European Commission emphasized that China remains an important partner for the EU, and the overall approach toward China continues to be "de-risking" rather than "decoupling." Nevertheless, the current economic relationship with China is deemed "unsustainable." As economic and security interests become increasingly intertwined, more decisive and coordinated responses are needed.

This Friday’s meeting will serve as a reference point for the upcoming EU leaders’ summit on June 18–19, during which China will be one of the main topics. During Friday’s debate on relations with China, Commission President Ursula von der Leyen did not present any specific tasks but instead sought endorsement and support from EU national leaders and heads of government at the summit.

New Policy Tools Under Discussion

The European Commission is currently discussing several new policy instruments, including an industrial policy tool modeled after the U.S. "Section 301" investigation, policies aimed at forcing European companies to diversify their suppliers, and trade mechanisms restricting Chinese access to the EU market in sectors such as chemicals, metals, and clean energy technologies—such as broad import quotas, anti-subsidy mechanisms, and enhanced investment review measures.

Engin Eroglu, Chair of the European Parliament’s Delegation for Relations with China, said these measures "will give us temporary relief."

Divergences Within the EU

According to sources in Brussels, most EU member states generally agree with the Commission’s assessment of the EU-China relationship. Observers also note that Hungary, under newly appointed Prime Minister Péter Márki-Zay, is adjusting its previously pro-Beijing stance.

However, position papers submitted by France and Italy ahead of Friday’s meeting revealed significant internal divisions within the EU. Drafted by France, this document called for stronger trade defense measures in response to issues related to China. Originally signed by Spain, Italy, the Netherlands, Lithuania, among others, Spain later withdrew its support at the last minute. Meanwhile, major industrial powers like Germany have consistently refused to sign this toughened document.

Germany’s Contradictory Position

Carsten Nickel, Deputy Research Director at Teneo Consulting, wrote in a report: "Paris believes Europe’s open markets are suffering from the combined impact of China’s industrial policies and U.S. trade protectionism." Nickel noted that "Germany’s stance appears more contradictory": on one hand, Germany is concerned about mounting pressure on its manufacturing sector; on the other, due to deep dependence by large industrial conglomerates on the Chinese market, Germany is constrained when formulating countermeasures. In 2025, bilateral trade between China and Germany is projected to reach €251.8 billion, with China’s trade surplus with Germany estimated at around €90 billion.

German Economy Minister Robert Habeck also sent ambiguous signals during his recent visit to Beijing. While maintaining a relatively moderate tone, he repeatedly stressed the need for dialogue with China and praised China as an important partner. At the same time, he warned of worsening imbalances in bilateral trade and urged China to improve Germany’s access to critical minerals and rare earth resources, demanding the establishment of a "level playing field."

China Warns of Retaliation

Responding to the European Commission’s May 29 discussion on EU-China relations, a spokesperson for China’s Ministry of Commerce said both sides are exploring the establishment of a mechanism for trade and investment consultations and will conduct relevant dialogues. The spokesperson emphasized that China “hopes the EU respects WTO rules, upholds free trade and fair competition, and firmly opposes protectionism and unilateralism.” He added, “If the EU persists in unilaterally introducing new trade tools and imposing discriminatory restrictions, China will resolutely respond with effective measures to safeguard its own interests.”

According to Global Times reports, researchers including Hong Yong, Deputy Researcher at the China Institute of International Trade, Jian Junbo, Director of the Center for Sino-European Relations at Fudan University, and Yan Tianqin, Research Fellow at the European Studies Center of Sichuan University, have pointed out the underlying issue of weak competitiveness among European goods, arguing that declining industrial competitiveness stems from problems within Europe itself. However, the EU maintains that China’s industrial policies undermine fair competition. Although the EU has attempted to restrict imports of certain Chinese goods, these efforts have yielded limited results.

Source: DW

Original: toutiao.com/article/1866821476715527/

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