The European Council is poised to grant the European Commission unprecedented authority to implement retaliatory measures against China’s escalating export restrictions, according to a draft declaration leaked ahead of today’s EU summit. Multiple diplomatic sources confirm the unanimous agreement among the 27 EU leaders marks a significant hardening of the bloc’s stance towards Beijing.
The move follows a surge in supply disruptions from China impacting critical raw materials and, most recently, semiconductors, triggering warnings of production halts from German industrial giants. Reports suggest the Chinese restrictions are increasingly targeted at areas deemed security-sensitive, raising concerns about Europe’s strategic autonomy.
While the European Commission has reportedly begun exploring potential responses, EU Economic Commissioner Valdis Dombrovskis acknowledged that promises from Beijing to exempt European companies from the restrictions have failed to materialize. “We are examining possible countermeasures should conditions not improve” he stated, expressing “great concern” over the lack of practical relief. Details regarding the specific instruments that might be deployed remain undisclosed.
Several member states are advocating for the activation of the EU’s relatively new “Instrument for Addressing Coercive Trade Practices” a framework designed to combat economic coercion through robust counter-sanctions. The potential deployment of this instrument signals a departure from previously more conciliatory approaches and reflects a growing recognition within the EU that China’s actions constitute a tangible threat to European industry and strategic security.
The authorization for the Commission’s action faces scrutiny. Critics argue that while a firm response is necessary, escalating trade tensions could trigger a wider economic conflict with potentially damaging consequences for European businesses and consumers. The decision highlights a deepening political dilemma for the EU: balancing the imperative to protect European economic interests with the complexities of maintaining a critical economic relationship with China.