EU Weighs Harder Line on China over Trade Imbalance

The European Union is stepping up efforts to address its growing economic dependence on China. At a summit in Brussels, member state leaders discussed options for tightening trade rules and introducing protective measures against Beijing.

The backdrop is a record trade deficit that exceeded €360bn last year and continues to grow.

The situation has been further complicated by China's decision to restrict exports of rare earth elements, on which several European industries depend.

While there is growing consensus within the EU that the problem must be addressed, member states differ on how to do so. France, Italy and the Netherlands are pushing for tougher measures, including tariffs or quotas, while Germany and Spain emphasize the need to maintain trade relations and dialogue.

The European Commission is meanwhile preparing a review of trade instruments aimed at reducing dependence on a single supplier.

(Reuters, mja)