China hawks are gaining ground in the Commission. Will EU countries follow?

Beijing is losing sway successful Brussels arsenic the European Commission hardens its stance connected China.

China hawks are gaining crushed wrong some the Commission's almighty Directorate-General for Trade and successful the furniture of President Ursula von der Leyen, Euronews has learned, with drastic caller measures being considered to antagonistic what is seen arsenic unfair competition.

The 27 EU commissioners are acceptable to statement connected their China strategy connected 29 May, with 1 authoritative saying, “It volition beryllium astir acknowledging determination is simply a occupation and that thing needs to beryllium done."

Tensions flared Monday aft China’s Ministry of Commerce threatened retaliation against the EU implicit its Made successful Europe legislation, which sets strict conditions connected overseas nonstop investment.

An EU authoritative told Euronews the Chinese were “playing games," adding that the Commission’s precedence remains engagement with Beijing done aggregate channels acceptable up successful caller months.

However, Commission services are already moving connected caller measures to code China's economical threats, sources person confirmed. “We don’t spot immoderate determination from the Chinese contempt each the issues we person flagged with them, truthful there’s a reflection connected whether we should bash more,” 1 said.

Another root said the merchandise of Germany’s commercialized shortage figures earlier Christmas marked a turning constituent for the Commission.

Data published past autumn by Germany Trade & Invest (GTAI) showed a grounds €87 cardinal German commercialized shortage with China — a wake-up telephone successful Berlin, agelong focused connected securing marketplace entree successful China up of protecting home manufacturing.

China has since surged up the docket for German industry, for the Bundestag — which has acceptable up a dedicated committee — and for the Commission, whose German president has Berlin’s ear.

The EU has agelong grappled with inexpensive Chinese imports threatening its industry. Pressure intensified past twelvemonth aft the US slapped steep tariffs connected Chinese goods, efficaciously shutting its marketplace and pushing Beijing to reroute overcapacity successful sectors similar alloy and chemicals toward Europe.

A caller study by the French High Commission for Strategy and Planning, a French authorities advisory body, warned that “the accumulation outgo gaps, arsenic assessed by manufacture players [across Europe], person present reached levels incompatible with sustainable competition, averaging betwixt 30% and 40%, and exceeding 60% successful definite segments (industrial robotics, mechanical components).”

Under these conditions, however tin the EU support its market?

The bloc’s leverage is chiefly constricted to its 450 million-strong user base. Still, 1 root said it is “increasingly becoming mainstream” wrong the Commission to pass Beijing that the EU marketplace could adjacent without rebalancing.

But the trade-offs are stark.

Chinese electrical vehicles — deed with EU tariffs successful October 2024 — item the dilemma. China depended arsenic connected the US and EU markets for astir each its exports earlier Donald Trump’s instrumentality to the White House successful 2025. “It cannot easy diversify its EVs arsenic it volition not merchantability successful Africa, nor successful southeast Asia, wherever there's nary infrastructure," different root said.

At the aforesaid time, Europe remains reliant connected China imports successful galore of the aforesaid sectors wherever China depends connected Europe. “Are we to adjacent our marketplace to lithium batteries from China? We cannot bash this overnight,” the aforesaid root said. The aforesaid applies to star panels, laptops and aesculapian devices.

Commission explores anti-coercion tool

The EU has commercialized defence tools — including anti-dumping and anti-subsidy duties — but they tin instrumentality astatine slightest 18 months to deploy aft a ailment is filed. Two sources said the Commission is moving connected caller instruments, but by the clip they bite, the harm whitethorn already beryllium done.

A 4th root described an overcapacity instrumentality arsenic inactive “premature.”

However, Commission services are besides mulling the Anti-Coercion Instrument (ACI), which allows the EU to deploy a wide scope of measures — from tariffs to restrictions connected nationalist procurement oregon intelligence spot — successful effect to economical unit from 3rd countries.

The tool, sometimes described arsenic a "trade bazooka", has ne'er been utilized since its instauration successful 2023, but resurfaced aft China weaponised uncommon world exports successful October 2025 during its commercialized standoff with the US by imposing strict export controls.

Exports resumed aft Washington and Beijing agreed connected a one-year truce, which besides covers Europe. But that woody expires successful October 2026, leaving uncertainty hanging implicit the EU.

Brussels wants the anti-coercion instrumentality acceptable if needed.

Tensions could emergence further aft Beijing’s threats implicit the Industrial Accelerator Act — the Made successful Europe authorities present debated by subordinate states and MEPs — oregon implicit unit linked to the Cybersecurity Act, which could signifier retired Chinese telecom operators from the EU market.

Securing subordinate states’ backing

However, a qualified bulk of EU countries is needed to activate the ACI, and subordinate states stay split.

“It requires a governmental enactment higher than for the accepted anti-dumping oregon anti-subsidies duties which tin lone beryllium rejected by a reversed bulk of EU countries,” a root said.

Despite the wake-up call, German Chancellor Friedrich Merz struck a softer code successful March, floating a semipermanent commercialized woody with Beijing.

But successful Brussels, that thought is disconnected the table.

"There are a fig of concerns and existent challenges that the European Union has consistently expressed to China that we request to spot them meaningfully code earlier we tin adjacent speech astir immoderate aboriginal agreements oregon thing similar that," the Commission’s lawman main spokesperson, Olof Gill, said.

Spanish Prime Minister Pedro Sánchez — who has visited China 4 times successful 3 years and secured large Chinese concern — backs person ties with Beijing.

Meanwhile, Belgian Prime Minister Bart De Wever urged a tougher enactment successful an 18 March missive to von der Leyen.

“We person arrived astatine a constituent of nary instrumentality successful which we request to marque hard choices successful the abbreviated word towards China to support our industries, economies and the well-being of our citizens successful the agelong term,” helium wrote.

France, agelong a proponent of a hard enactment connected China, shares that view.