
Amid a proxy war with Russia, growing acrimony with the US and roiling protests at home, it is madness for European leaders to pick a trade fight with China
Columnist Alex Lo argues that the European Union's pursuit of a trade 'kill switch' against China is a strategic error, given the bloc's internal economic instability, rising public protests, and existing geopolitical tensions with Russia and the US.
AI-generated summary
The EU is considering a new trade instrument to restrict market access in response to perceived economic coercion. This follows recent tensions regarding hybrid-car trade deals.
Beijing has told Brussels not to “fantasise” that pressure will extract concessions. This came after China made a goodwill gesture in the recent hybrid-car trade deal. The European Union responded by doubling down on a proposed trade “kill switch”.
The instrument follows a Franco-German proposal. It would let the bloc swiftly restrict single-market access in response to economic coercion. EU chief Ursula von der Leyen says all 27 leaders back it. Chemicals and machinery are priority sectors. French President Emmanuel Macron wants to add plastics and ferroalloys. German Chancellor Friedrich Merz and others want a tougher, unified line on Chinese trade practices, currency depreciation and critical dependencies. The formal proposal is expected in December.
Unanimity among 27 leaders is itself a rare thing. It is usually reserved for communiques about how much everyone values unanimity. At a time when a proxy war with Russia, a likely trade war with China and acrimony with the United States are pushing the cost of living and livelihoods of ordinary Europeans to the brink, this is starting to look like a case of collective madness, a communal death drive. But China is the least of its problems.
The union faces what may be its most precarious moment. Its leaders are deeply unpopular, and its economy is sluggish. No wonder angry Europeans are hitting the streets. I have read a description of a “European Autumn”, with citizens turning on their rulers in one capital after another, much like the Arab Spring. Could Europeans become as fed up with incompetent and arrogant leaders as Arabs did?
AI outlook — possibilities, not facts
Formal proposal of the trade instrument in December.
Likely · Within months

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