EU Escalates Trade War With Fresh Restrictions on Chinese Imports
The EU is adopting a protectionist trade stance against China to combat a record trade deficit and protect its domestic industrial base from competition.
Atlas Newsdesk ·
European Union Trade Commissioner Maros Sefcovic met with Chinese Commerce Minister Wang Wentao in Brussels on Monday to address a widening trade imbalance that has fueled fears of European deindustrialization. The talks follow a 15 percent increase in China's trade surplus with the bloc, which reached 360.6 billion euros in 2025.
The European Commission is shifting away from its traditional stance of open commerce toward a more protectionist framework. This policy pivot is driven by the rapid expansion of Chinese firms in critical sectors, including solar energy, robotics, and automotive manufacturing. Chinese electric vehicle brands recently surpassed 10 percent of total auto sales in the EU, contributing to significant workforce reductions at major European automakers such as Volkswagen and BMW.
To mitigate further industrial decline, the EU is considering the Industrial Accelerator Act, which would prioritize domestic goods in public procurement, and potential revisions to the Cyber Security Act to restrict Chinese participation in critical infrastructure. While Brussels seeks to avoid a full-scale trade war, new measures targeting steel imports and small parcel customs charges are scheduled to take effect on July 1.
Both parties have agreed to continue negotiations in October, focusing on four identified workstreams to manage ongoing economic tensions.