According to a report by Reuters on October 8th, 44 European industry associations jointly pressured the EU on that day, demanding an immediate expansion of trade defense measures against China and restrictions on what they called ' unfair competition'. These associations claimed that Chinese goods were threatening European manufacturing and could lead to the loss of more jobs.
Participating associations come from industries such as metals, chemicals, and automotive parts. They demand that the EU fully utilize existing trade defense tools, expand the scope of review to the entire industrial chain, and appoint additional personnel to accelerate the processing of trade complaints against foreign companies.
These associations also request the EU to develop new policy tools to address so-called “state-driven market distortions”. However, they emphasize that the measures should minimize any harm to Europe’s close trading partners such as the UK, Norway, and Switzerland.
This joint pressure comes as the EU is considering further tightening its trade policies towards China. EU leaders are scheduled to meet in Brussels next week to discuss how to address the trade deficit between the EU and China. The EU claims that this deficit currently exceeds 1 billion euros per day.
France and Germany announced a joint proposal to expand trade defense measures this Monday. European Commission Trade Commissioner Sevkovic, who is currently visiting Beijing, attempts to pressure China, demanding that China restrict the export of certain goods to Europe. Hybrid vehicles are likely to be the main target.
According to a previous report by the British 'Financial Times', the European Union had requested China to voluntarily restrict the export of hybrid vehicles, but China refused. The European Commission then considered imposing unilateral import restrictions. If this measure is implemented, it will further exacerbate the trade conflicts between China and Europe in the automotive sector.
European industry associations have repeatedly asked Brussels to take tougher measures against Chinese goods.
In September this year, the European Metal Trade and Distributors Association (Eurometal) warned that if Chinese component manufacturers were not restricted from entering the European market, the EU’s manufacturing sector could face more unemployment. The association also held a protest outside the headquarters of the European Commission, carrying symbolic coffins with words like “EU competitiveness” and “industrial jobs” written on them.
The president of the association, Alexander Julius, stated that Chinese companies hope to gain control over the entire value chain by entering the supply chains of key products.
German Automotive Industry Association (VDA) Chairman Hildegard Müller also stated that the EU can use trade defense tools when competition is distorted. However, she warned that such measures need to be thoroughly discussed with the affected industries, as protectionist and isolationist policies pose a risk of escalating trade disputes.
There are also differing opinions within Europe regarding the expansion of trade restrictions.
The Spanish newspaper "El Pais" has criticized the EU's trade protectionist tendencies, stating that trade barriers may ultimately lead to higher prices for European consumers and undermine corporate competitiveness. The British magazine "The Economist" believes that the difficulties faced by European industries cannot be simply attributed to global trade imbalances. If Europe wants to revitalize its manufacturing industry, it must address its own problems, rather than keeping competitors out of the market.
In response to the European side's continuous emphasis on the so-called trade imbalance issue, Mao Ning, a spokesman for the Chinese Ministry of Foreign Affairs, stated on May 28 that international trade is a two-way transaction, and there is no forced buying or selling. The essence of China-Europe economic and trade relations is mutual benefit and win-win results, and China never deliberately pursues a trade surplus with Europe.
Mao Ning pointed out that if we only consider trade in goods, ignoring trade in services and investment returns; if we only focus on trade figures, disregarding the trade structure and profit flows; if we only import from China, ignoring the European side's own restrictions on exports, then it is natural to reach a one-sided conclusion about 'trade imbalance'.
Whether it's "going risk", "reducing dependence", or what is euphemistically called "trade balance", in reality, they are all protectionism. Mao Ning stated that these measures will only harm European consumer interests, raise corporate costs, and weaken long-term competitive power of the industry.
She emphasized that the European side should view China-EU economic and trade relations in a comprehensive and objective manner, and adhere to the promises of free trade. The Chinese side will take necessary measures to safeguard its legitimate rights and interests.
