EU Concerned Over Unsustainable Trade Deficit with China and Potential Protective Measures

The European Commission has expressed concern regarding the trade surplus with China, noting that the current situation is unsustainable. This concern stems from China's shift toward producing high-tech goods and becoming a major competitor in key European industries. The Commission is reportedly being asked to investigate instruments to address global trade threats, particularly concerning Chinese industrial overcapacity.

Industry groups warn that the expanding competition from China is already leading to job losses in EU manufacturing. These groups fear that the current market dynamics are allowing Chinese companies to embed themselves in critical supply chains through component sales, leading to the cannibalization of European industries.