New Trade Strategy with China
The European Commission is ready to adopt a tougher trade policy towards China,reacting to what officials call a "China shock" hitting European industries. During a key meeting on Friday,trade chief Maros Sefcovic stressed need for bloc to bolster its defenses against rising pressures from Chinese market practices.
To tackle these issues, Sefcovic mentioned that new regulatory tool might be needed. This would require companies in key sectors to diversify their suppliers,both in number and location. The goal? Reduce dependence on Chinese suppliers and boost the strength of European industries.
Alongside this new framework,Sefcovic plans to ramp up the use of safeguard measures. These are especially important for sectors facing tough competition from Chinese overcapacity. Unlike regular anti-dumping or anti-subsidy investigations,safeguards can be put in place more quickly and broadly. They also have a lower threshold for approval among member states, needing only a qualified majority to block them. Industries like chemicals and machinery will likely be the first to benefit from these protective steps, as Europe aims to protect itself from the negative impacts of Chinese trade practices.
