EU prepares new trade offensive against China: five countries call for tougher tariffs

France, Italy, Spain, Netherlands and Lithuania urge Brussels to do more to protect European markets from unfair competition and “economic threats”

The European Union is preparing for a tougher trade policy against China and other countries that some member states say are violating fair competition rules. France, Italy, Spain, the Netherlands and Lithuania have submitted a joint non-paper to the European Commission calling for more aggressive use of tariffs, trade investigations and new economic protection mechanisms.

This was reported by Politico.

The paper calls for more frequent investigations into unfair trade practices and increased scrutiny of foreign companies that may be circumventing EU restrictions. Although China is not specifically mentioned, the authors of the statement are in fact referring to Beijing, citing “systemic and structural overcapacity” and the creation of new trade barriers.

The initiators propose to give the European Commission broader powers to impose anti-subsidy duties not only against states, but also directly against companies. They also propose the creation of a new “resilience instrument” — a mechanism that will allow for rapid response in cases where existing trade protection instruments do not work.

The document pays special attention to the concept of “economic security”. The authors of the initiative believe that the EU should take into account the risks to strategic industries and production chains when making decisions on the introduction of duties and other restrictions. In their opinion, this will allow preserving Europe’s industrial base in the face of global competition.

It is significant that all the largest EU economies, except Germany, are among the signatories to the document. This indicates the gradual formation of a new approach to international trade in Europe, where economic issues are increasingly intertwined with geopolitics and security.

Against this backdrop, French President Emmanuel Macron has called on the European Union to act more decisively and follow the example of the United States in protecting strategic sectors of the economy. The topic of “global imbalances” related to Chinese exports is expected to be one of the key ones during the G7 summit in June.