The EU will intensify measures against Chinese imports before an October deadline to protect its market from overcapacity, as negotiations with Beijing to reduce a €1 billion-a-day trade deficit continue amidst high tensions and threats of retaliation.
The head of the Russian Union of Industrialists and Entrepreneurs, Alexander Shokhin, stated that an excessively strong ruble is making Russian goods uncompetitive against cheaper imports from China. He noted that the overvalued currency hinders exporters and makes it difficult for Russian companies investing in import substitution to compete.
The European Commission is introducing a new €3 customs charge on small parcels under €150 from Wednesday, ending a 'de minimis' exemption. This aims to curb cheap Chinese imports, protect European retailers from platforms like Shein and Temu, and address the high rate of non-compliant products endangering consumers.
Chinese companies are openly advertising services to help businesses circumvent EU tariffs on low-cost imports. Practices include establishing manufacturing in 'gateway countries' like Morocco or modifying products to avoid classification. The EU's anti-fraud office (OLAF) is investigating, and the European Commission is expected to propose strengthening trade defence measures.
China threatens countermeasures if EU imposes new trade restrictions to combat Beijing's industrial overcapacity, which is undermining European manufacturing and causing a growing trade deficit.
The European Commission is stepping up efforts to protect EU industry from Chinese overcapacity as the trade deficit widens. Options include supplier diversification, tariffs on strategic sectors, anti-dumping duties, and the Anti-Coercion Instrument, but member states remain divided.
The European Parliament has approved a proposal to double import tariffs on steel products to 50% and cut duty-free quotas by 47% to protect the EU's steel industry from cheap Chinese exports. The measures, which aim to combat global overcapacity largely attributed to Chinese subsidies, are expected to take effect on July 1st after final approval by member states.
