EU leaders to ‘urgently’ call for new trade weapons to tackle China shock
EU leaders to seek new tools to counter economic imbalances despite recent hybrid car import deal
Quick Look
EU leaders are set to demand new measures to address trade imbalances with China at an upcoming summit, despite a recent agreement to cap Chinese hybrid car imports at 350,000 units annually.
AI-generated summary
Why It Matters
The EU and China recently agreed to cap Chinese hybrid car imports at 350,000 per year. This follows broader concerns regarding trade imbalances caused by Chinese economic policies.
Leaders of the EU’s 27 member states will instruct Brussels to “urgently” come up with new weapons to counter the imbalances they believe are caused by China’s economic policies, at a meeting in the Belgian capital on Thursday.
The instruction – part of a draft statement being negotiated ahead of this week’s European Council summit – comes after the European Union and China reached a surprise deal in Beijing last week that will cap the number of Chinese hybrid cars imported to the bloc at 350,000 per year.
While the deal dampened the immediate threat of a trade war, officials and diplomats in Brussels made clear on Wednesday that it was not enough and that the EU intends to keep the pressure on China to moderate its exports in other sectors.
“One swallow does not make a summer, but it’s a first result and the start of a process to get China to moderate its exports,” said a senior diplomat, speaking on condition of anonymity.
What to Watch
AI outlook — possibilities, not facts
European Council to discuss new trade measures on Thursday
Very likely · Within days
Open Questions
- What specific new measures will the EU propose?
- How will China respond to further trade pressure?
