European Union seeks new trade defenses amid China negotiations

European Union leaders have agreed to strengthen trade defense tools to protect domestic industries, such as electric vehicles, chemicals, and machinery, against global economic imbalances. This move follows discussions at the European Council where member states, led by France and Germany, called for new mechanisms to reduce dependence on foreign suppliers and counter unfair trade practices.

In a related development, EU Trade Commissioner Maros Sefcovic and Chinese Minister Wang Wentao reached a preliminary agreement in Beijing to address the influx of Chinese hybrid and plug-in hybrid electric vehicles (PHEV). The deal aims to reduce these specific exports by more than half over the next four years, potentially limiting them to 350,000 units annually with a gradual increase.

While the agreement includes measures to reduce Chinese tariffs on products like olive oil, footwear, and auto parts, EU leaders view these steps as only a first phase. The bloc continues to address a significant trade deficit with China, estimated at approximately 360 billion euros, which Brussels considers unsustainable.