EU leaders discuss stronger trade‑defence measures as deficit with China reaches historic level
European heads of state and government met in Brussels to debate a coordinated response to the bloc’s widening trade gap with China, which hit a record €31 billion in September. A joint letter from French President Emmanuel Macron and German Chancellor Friedrich Merz to Commission President Ursula von der Leyen signals a shift toward a more unified EU stance on Chinese trade, while the European Commission plans to present a trade‑diversification package by the end of the year.
At the same time, EU Trade Commissioner Maroš Šefčovič announced a pact with China to cut hybrid and plug‑in hybrid car imports by more than half over four years, a measure aimed at protecting European automotive jobs. Leaders are also set to consider tighter anti‑subsidy probes, stronger industrial safeguards and a rapid‑response mechanism for future trade restrictions.
Why it matters
The discussions and the hybrid‑car import pact could reshape how Europe sources critical inputs and protects its manufacturers from perceived market distortions.
How the sides frame it
MODERATE AGREEMENTAll camps report EU moves toward tougher China policy and a fast-track trade tool, but left-leaning coverage frames it as a values-driven, unified stance to protect European industry, centrist coverage stresses the need for new instruments amid trade-deficit and security concerns while retaining dialogue, and right-leaning coverage warns that the tool amounts to protectionism that could spark a trade war.
LEFT
Frames the EU’s China policy as a coordinated, values-driven effort to defend European markets and uphold human-rights standards against unfair Chinese practices.
CENTER
Frames the story as a push for stronger EU measures and new trade tools to address a growing trade deficit and security risks while still emphasizing diplomatic engagement.
RIGHT
Frames the fast-track tool as a risky protectionist move that could destabilise the EU economy and trigger a trade war with China.
The left emphasises
- calls for a "balanced, values-driven policy" and de-risking of strategic industries
- highlights China’s unfair economic practices and alleged support for Russia
- urges cooperation with the US, G7 and other allies
The right emphasises
- describes the proposed tool as "protectionist" and a "kill switch"
- warns of a potential "real trade war" and economic harm to Europe
- emphasises domestic industry threats and urgency to act quickly
How this story developed
- Sep 1 Germany pushes for deeper Japan partnership to cut chip reliance on China
- Sep 4 The Austrian Business Agency reports that Chinese vehicle manufacturers are actively exploring Austria for manufacturing and R&D facilities.
- Sep 15 German firms have moved to partner with Japanese companies on chip components.
- Sep 21 EU trade commissioner Maroš Šefčovič scheduled a visit to China to discuss the export curbing request.
- Sep 24 Prime Minister Mark Carney said his government has studied the possibility of a US-led military move against Canada, calling it an extreme tail risk, while noting frequent talks with President Donald Trump amid a worsening trade dispute.
- Sep 24 Chinese firms have moved from exploring to setting up joint electric‑car assembly projects in Graz.
- Sep 27 The United States imposed 50 % duties on $28 billion of Canadian imports.
- Oct 5 France and Germany have formally pushed for fast‑acting EU trade tools to counter market distortions.
- Oct 7 EU trade commissioner Maros Sefcovic is set to travel to Beijing for talks on trade frictions.
- Oct 9 President Lai Ching-te will use his National Day speech to stress economic expansion, new welfare measures and Taiwan’s geopolitical stance.
- Oct 10 The European Parliament held the vote on the China‑related resolution.
- Oct 11 Lai now vows to protect freedom and stresses parity in defence as part of his National Day address.
- Oct 16 EU Trade Commissioner Maroš Šefčovič secured a deal with China to halve hybrid car imports over four years.
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