EU Calls for Recalibration of Trade Ties with China Amid Threats of Retaliation

The European Commission has urged all 27 EU member states to present a united front in discussions with China, describing the current trade and investment relationship as "unsustainable". Commission officials said the EU must rebalance ties to ensure they are fair and mutually beneficial, citing concerns over Chinese overproduction, illegal subsidies and the risk of higher tariffs on strategic sectors such as steel.

Member states are divided: France and Italy favor tougher measures, while Germany, the Netherlands and Spain push for a more cautious approach to avoid harming investment and access to raw materials. The EU is also developing a "Made in Europe" framework to tighten rules on Chinese investments and protect strategic supply chains. China has warned it will respond firmly to any unilateral EU restrictions, threatening counter‑measures. Further talks are slated for the upcoming G7 summit and the EU leaders’ meeting in Brussels in mid‑June.