EU Seeks Fair Trade with China While Avoiding Conflict

The EU aims to avoid a trade war with China while keeping its markets open. German Chancellor Friedrich Merz stated this in Berlin on Wednesday, October 21, 2026. This policy helps maintain stable trade ties for companies and workers in the region.

Merz noted the trade deficit between the EU and China. He acknowledged China's success in research and development. Germany and France proposed a new trade defence tool. This tool allows the EU to protect European supply chains more quickly. EU leaders supported the plan at last week's European Council meeting.

Merz explained that the EU wants to deter unfair practices rather than start a conflict. EU and Chinese officials have already started discussions on trade issues. These talks have yielded initial results. Merz emphasized that the EU wants fair trade in their mutual interest.