European Union Prepares New Trade Restrictions Against China
The EU is working on new powers that could completely halt product imports to balance the growing trade deficit with China and prevent unfair competition.
European Union leaders have requested the European Commission to prepare a proposal for new trade measures by the end of the year to reduce the market pressure caused by low-cost products from China.
New Trade Powers and Restrictions
EU leaders meeting in Brussels have agreed on strict measures that could completely block market access in response to China's unfair trade practices.
Lithuanian President Gitanas Nauseda stated that these steps are an extreme and harsh tool, noting that closing the market to Chinese products is an option.
Sectoral Reviews and Market Impacts
The European Commission is examining heavy shipments from China, particularly in the chemical and machinery sectors, and is evaluating quota-like restrictions similar to those applied to hybrid vehicles.
Following the EU's protectionist steps, there was activity in European chemical stocks; increases were observed in the shares of companies such as BASF, Arkema, and Lanxess.
Economic Data and Political Reactions
German Chancellor Friedrich Merz emphasized that they will no longer stand by while China harms the European economy with subsidies and aggressive pricing policies.
According to data from the General Administration of Customs of China, the EU's trade deficit with China reached a record level of $34.8 billion in September.