The European Commission agreed on a tough new approach to trade relations with China, at a rare Beijing-focused debate among Brussels’ leadership on Friday.
In a presentation, trade chief Maros Sefcovic laid out why the bloc needed to take stronger steps to defend itself from what is described as a new “China shock” to its industries, according to people briefed on the event.
This may require developing a new instrument to compel companies in critical sectors to expand both the number and the locations of the suppliers they use. Sefcovic is also expected to ramp up the use of safeguard measures in sectors that are under severe pressure from Chinese overcapacity.
Safeguards are faster and broader than anti-dumping or anti-subsidy probes and are difficult for dissenting member states to block, since a qualified majority of capitals is required to obstruct them. They are expected to be used in some chemicals and machinery industries.
The trade-focused orientation debate is seen internally as the firing of a starting gun ahead of an intense period for China policy.
European Commission President Ursula von der Leyen is supportive of a more robust approach, with her college of commissioners expected to fall into line behind her.