EU plans new trade measures against China over market competition

The European Commission plans new trade measures against China. European Commission President Ursula von der Leyen announced the news in Strasbourg on Wednesday. She said Chinese firms get up to eight times more state aid than European firms. This aid gives Chinese companies an unfair market advantage.

In 2025, the EU trade deficit with China reached one billion euros a day. Von der Leyen called this deficit unsustainable. She noted that market distortions harm European companies. EU leaders supported the Commission at a recent summit in Brussels.

Previous talks have already yielded some results. In October, EU Trade Commissioner Maroš Šefčovič agreed on hybrid car rules with Beijing. This deal aims to reduce Chinese hybrid car exports to the EU. The EU also secured better access to Chinese rare earth elements and magnets.

The EU may still use tariffs if further talks fail. The Commission is working closely with the chemical and machinery sectors. In December, the EU will present a new supply chain package called Diversify EU. The Commission also wants powers to restrict single market access immediately. It will also propose a solidarity package to support member states under economic pressure. CPH Post reported the story.