EU Warns of New Trade Shock as Import Deficit Grows

The European Union is preparing strict new trade rules against Chinese exports. These measures could affect tech, machinery, and automotive jobs across Europe. EU leaders claim surging imports are harming key European manufacturing sectors.

European Commission President Ursula von der Leyen highlighted a second China shock. The first wave in 2001 involved cheap toys and textiles. The new wave includes electric vehicles, chemicals, machinery, and power equipment. The daily trade deficit with China has reached one billion euros. Von der Leyen said this situation leads to European deindustrialization. She warned that words are good, but deeds are better.

The European Commission proposed a new Public Procurement Act on September 9. This act covers a 2.5 trillion euro annual market. It applies to public contracts for national authorities, schools, and hospitals. Authorities could reject bids with less than 50 percent European content. The proposal needs approval from the European Parliament and member states.

Europe depends on China for over 80 percent of critical raw materials. It relies on China for 90 percent of some rare earths. A new European Corporation on Critical Raw Materials will stockpile vital items. These materials support electric vehicles, semiconductors, batteries, and defense tech. US tariffs have also directed more Chinese exports toward European markets. This update was reported by Asia Times.