The European Union is preparing to extend protections to additional sectors as imports from China climb. After meeting trade ministers in Dublin, Trade Commissioner Maros Sefcovic said officials are weighing which industries to address next through negotiations with Beijing or unilateral moves.
He called the timeline pressing. The EU's trade gap with China reached nearly €197 billion in the first half of the year and could overtake the 2022 record at the current pace. Officials say the shortfall now tops €1 billion a day and is still growing, squeezing European manufacturers in sectors such as cars, chemicals and machinery.
Months of talks led to an agreement that sets an initial cap of 350,000 hybrid vehicles shipped from China to Europe. Beijing also committed to open its market to certain EU goods, and the discussions will continue early next year even as many governments push for faster and broader action.
During a summit last week, EU leaders signaled that comparable limits ought to be applied to additional Chinese goods - preferably through agreement with Beijing, but on a go-it-alone basis if necessary. They further endorsed fresh trade authorities that could let the EU shut out foreign nations from its large market in the event of a full-blown trade conflict.
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Ministers floated priority areas on Friday, and Sefcovic said member states sent the most detailed input on plastics. Lithuanian Foreign Minister Kestutis Budrys cast the key issue as Europe's ability to retain control over strategic fields, listing pharmaceuticals, semiconductors, drones and quantum technologies.
The European Commission will now do the legal work before any protections are approved. By year end, it plans to present the new trade powers and propose ways to push companies to diversify supply chains and to support countries facing economic coercion. The push builds on a Franco German initiative that helped bring a tougher line together, with Germany's backing described as pivotal given its past resistance to China curbs.
French trade chief Nicolas Forissier said, "Chinese authorities understand when you are clear, when you speak clearly, when you are firm on your positions," adding, "We have not done that in a long time." He also noted, "It's very important that the German and French engine, which is very essential to the future of Europe, starts again."
Such steps carry diplomatic risk. China has warned the EU against imposing more trade limits while talks continue. The bottom line: watch the sectors singled out by ministers and leaders - hybrids today, plastics under review, and other products potentially next - as Brussels works up legal tools and a broader playbook.
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