EU Parliament Shifts Towards Tougher China Policy

The European Parliament is increasingly forming a cross-party consensus to adopt a harder line against China. EU Trade Commissioner Maroš Šefčovič has warned that the EU is prepared to take action if no progress is made in talks with China to address the EU's 1 billion euro daily trade deficit. The EU is considering measures to counter China's industrial dominance, including new regulations to encourage companies to diversify their supply chains and protectionist measures to limit the import of critical goods such as hybrid-electric vehicles. The Parliament's Committee on Foreign Affairs has called for a reduction in Chinese exports and the EU's excessive dependence on Chinese goods, including semiconductors. Pascal Canfin, the Parliament's rapporteur for EU-China trade relations, has stated that 'business as usual' is no longer an option in EU-China relations, citing growing support for a more assertive industrial policy.