Enterprise & Industry

Spain, France, and others push EU for tougher China trade measures

Five major EU states demand faster tariffs and new powers against Chinese industrial overcapacity

Deep Dive

A coalition of major EU member states—Spain, Italy, the Netherlands, France, and Lithuania—is urging Brussels to adopt a significantly tougher trade regime targeting Chinese industrial overcapacity. In a paper prepared ahead of a critical China policy debate, the countries call for faster emergency tariffs, broader safeguards for entire sectors (rather than product-by-product anti-dumping cases), and new anti-circumvention powers. They also propose a novel 'resilience tool' that would be triggered when European supply sources become too concentrated beyond a specified threshold.

The move reflects growing frustration among EU governments and industries over the competitive pressure from Chinese exports, particularly in steel, ferroalloys, and advanced manufacturing. The Netherlands, home to chip-equipment giant ASML, has been at the forefront of economic security concerns involving China and the US. The European Commission is expected to use this Friday's debate to chart a new course in EU-China relations, with these aggressive proposals likely to escalate tensions between the bloc and Beijing.

Key Points
  • The paper calls for sector-wide safeguards instead of slower product-by-product anti-dumping cases.
  • A new 'resilience tool' would automatically activate when EU supply sources exceed a concentration threshold.
  • The coalition includes Spain, Italy, the Netherlands, France, and Lithuania, with the Netherlands driving economic security concerns.

Why It Matters

This push could significantly escalate EU-China trade tensions and reshape global supply chains for critical industries.