Europe rallies around tough new China strategy ahead of key summit
Broad coalition of EU members support new trade strategy to prevent China causing European deindustrialisation as key Brussels summit looms
From free marketeers to long-term interventionists, EU countries of all stripes are converging on the need for urgent action to prevent a Chinese-driven European deindustrialisation ahead of a key summit in Brussels, multiple sources said on Wednesday.
A broad coalition of members now support the development of a tough new trade strategy that could involve multiple new instruments and a more rapid-fire, strategic use of existing weapons.
“There are different strands: a diversification instrument and a more protective instrument. There’s work to be done to see how both can be combined – this is why the commission needs guidance from leaders to find a compromise,” said a senior diplomat from a supportive member state, who, like many, spoke on condition of anonymity because policy is still evolving.
“There’s a link between overcapacity and subsidies – especially if we can’t do a proper investigation in third countries on what kind of subsidies they are using, we have to defend ourselves against that,” the diplomat continued.