EU Considers New Measures Against Chinese Imports

The European Union is weighing new measures to protect its industry from rising Chinese imports and reduce its dependence on China for critical raw materials. EU commissioners discussed the possible steps on Friday, with proposals expected ahead of a summit of EU leaders in June.

Among the options under consideration are requirements for companies to diversify their supply chains and new trade instruments that would limit China's access to the European market in sectors such as chemicals, metals and clean technology.

The European Commission said after the talks that its approach to China remains based on risk reduction, not complete disengagement. It warned, however, that the current state of trade and investment relations with Beijing was not sustainable. The Commission noted that the increasingly close link between economic and security interests would require a stronger and more coherent EU response.

The issue is also expected to feature at the G7 summit, where Western countries have been drawing greater attention to China's dominance in rare earths and other strategic metals needed for defense, energy, technology and the automotive industry.

Beijing has rejected the criticism, accusing the EU of selective use of trade data, and warned of "strong countermeasures" if Brussels adopts a policy of favoring European products.

The EU has already imposed tariffs on subsidized Chinese electric cars, but Chinese brands continue to gain market share in Europe. European industry, meanwhile, faces higher energy prices and stricter regulation than its US competitors.

(reuters, lud)