With 454 votes in favor, 86 against, and 110 abstentions, Members of the European Parliament supported a tougher approach towards China. The Parliament wants to more forcefully deploy existing European tools against unfair competition, Chinese state aid, and cheap export products. According to the MEPs, China is increasingly developing into an economic and political rival.
Furthermore, the EU must reduce its dependence on China. The Parliament demands better protection of critical raw materials, medicines, batteries, electric vehicles, and computer technology. Foreign investments in ports, electricity grids, and communication networks must also be more strictly monitored to make important European industries less vulnerable.
Protectionism
China opposes the European plans and accuses Brussels of protectionism. The Chinese Ministry of Commerce warns that new restrictions undermine mutual trust. Chinese experts point to possible countermeasures, including investigations into foreign subsidies, discriminatory trade practices, and the security of international supply chains.
Promotion
Meanwhile, France and Germany are working on a joint proposal to grant the European Commission more powers regarding trade conflicts. This would enable Brussels to act more quickly against foreign companies. China warns that such measures disrupt international trade and may violate existing trade rules.
Agreement
Chinese hybrid passenger cars also risk becoming the subject of new trade measures. The European Commission is investigating additional import restrictions on these vehicles. Beijing rejects voluntary export limits. At the same time, the European Parliament demands fairer market access for European companies in China and opposes disadvantages caused by Chinese government subsidies.
Despite rising trade tensions, the EU and China reached initial agreements last week in Beijing to reduce their trade disputes. According to EU Trade Commissioner Maroš Šefčovič, there is agreement on reducing Chinese exports of hybrid and plug-in hybrid cars to Europe, possibly by more than half.
Lower tariffs
China is also willing to lower import tariffs on European products, including car parts, olive oil, and shoes, with a combined export value of nearly four billion euros. Agreements were also made to facilitate Chinese export licenses for rare earth metals and permanent magnets.
Šefčovič calls this a first step but emphasized that the European trade deficit with China remains unsustainable. The European Commission will present the results to EU leaders, who will decide on further steps. Negotiations will resume by January at the latest, followed by new trade talks in March.