French and German leaders urge EU to prepare 'one-click trade cutoff' mechanism against China
Paris and Berlin are pressing Brussels to toughen the EU’s stance on trade with China. They seek to grant the bloc a new power: the ability, when necessary, to immediately exclude foreign goods from the European market. At its core, this proposal signals that before engaging Beijing in negotiations, the EU must first tighten its grip. For Germany, this marks a shift, as German firms have historically relied heavily on the Chinese market, making Germany less inclined than France to impose restrictions on China.
European manufacturers argue that Chinese products are cheap because of state subsidies, undermining domestic industries. Last year, the EU recorded a goods trade deficit with China of approximately €360 billion—around $400 billion. China disputes this characterization.
Now, both sides are scrutinizing each other’s exports. On Saturday, Beijing launched an investigation into a European chemical used in dyes, pharmaceuticals, and pesticides. This follows three recent EU investigations into Chinese chemicals. Anti-dumping probes assess whether foreign goods are sold below fair value, harming local producers; if proven, such practices may trigger additional import duties to protect domestic industry.
On Monday, French President Emmanuel Macron and German Chancellor Friedrich Merz wrote to European Commission President Ursula von der Leyen, stating that existing trade defense instruments are insufficient. They are calling for a new tool enabling the Commission to take “strong measures, including immediate termination of access to the EU internal market when necessary.” According to the South China Morning Post, this effectively amounts to a “one-click trade cutoff switch” for EU-China relations.
Paris and Berlin also advocate that the Commission should be empowered to initiate countermeasures unless a qualified majority of EU member states vote to halt them. This would allow Brussels greater flexibility even if individual countries oppose action.
The proposal does not explicitly name China and claims the new instrument should apply universally. However, the cited issues—subsidies, low-cost exports, and market distortions—mirror the EU’s standard criticisms of China.
The document acknowledges potential divisions within the EU and warns that retaliatory actions by trading partners could test the bloc’s “political cohesion.” It urges Brussels to assess how countermeasures from other countries might affect individual member states.
The dispute also extends to Europe’s reliance on Chinese raw materials. EU officials say export restrictions from China have harmed European businesses. Paris and Berlin are calling for another tool to reduce dependency on single suppliers, aiming to prevent deeper entrenchment in vulnerable supply chains.
EU Trade Commissioner Valdis Dombrovskis is scheduled to visit Beijing later this week to meet with Commerce Minister Wang Wen Tao. Brussels has set a deadline of October for tangible progress on trade concerns; otherwise, “more stringent measures” will follow. Beijing has warned that any new restrictions on Chinese enterprises or products would be met with firm responses. The Chinese Ministry of Commerce emphasized that the EU should address its own economic challenges through dialogue to resolve differences.
Original: toutiao.com/article/1878312791784580/
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