Europe must wake up to the China trade gap

The EU’s €360 billion trade deficit with China underlines the need for a tougher European response to unfair trade practices, the EPP Group says in a position paper adopted today. The Group is calling for stronger, faster EU action to tackle unfair trade practices, protect European businesses and reduce strategic dependencies.

The EPP Group put forward many proposals, including considerably shortening trade investigations, which can currently take up to 18 months, and strengthening customs checks to prevent companies from evading existing measures. It calls for closer scrutiny of sectors vital to Europe’s economic security, including advanced technologies and critical infrastructure, alongside stronger coordination among Member States on export controls and foreign investment screening. It also insists on granting better access to the Chinese market for European companies and stronger EU trade tools.

“A trade deficit of almost €1 billion a day should be a wake-up call. The EPP Group’s position is not one of trade confrontation but of results-oriented dialogue. However, were diplomatic efforts to fail, the European Union as a whole should be ready to effectively respond to unfair trade practices targeting the EU market,” said Juan Ignacio Zoido MEP, author of the position paper.

To strengthen Europe’s economic security, the EPP Group urges the EU to diversify its trade partners and suppliers by advancing the ratification of free trade agreements, concluding ongoing negotiations and reducing reliance on critical raw materials through cooperation with trusted partners worldwide.

The paper calls for action against the circumvention of EU trade defence measures through transhipment, rerouting and poor traceability. It also urges a coordinated response to economic coercion, combining mutual support and joint countermeasures among Member States.

“China remains an important trading partner, but the EU must be prepared to act when unfair practices put European businesses at a disadvantage. Europe cannot afford to depend too heavily on a single supplier for strategic technologies and critical materials. We need to diversify our supply chains and open new markets for European exporters,” said Jörgen Warborn MEP, the EPP Group’s spokesman on international trade.

The full version of the position paper will soon be available.