Symbolic imageGermany and France call for EU tool to close market to China, Beijing objects
Germany and France asked the European Commission on Monday for a new instrument to shut the EU market quickly to countries that break trade rules. China's commerce ministry replied that protectionism cannot enhance competitiveness.
In a letter to Commission president Ursula von der Leyen on Monday, 5 October, Chancellor Friedrich Merz and President Emmanuel Macron described a "massive industrial shock" hitting pharmaceuticals, aerospace, automotive, machine tools and chemicals. Handelsblatt, citing diplomats and senior officials, reports that the Commission would be empowered to exclude Chinese companies from the single market in a fast-track procedure. The letter names no country, but trade commissioner Maroš Šefčovič travels to Beijing on Thursday. He has called the EU's trade deficit with China of roughly €1bn a day "unsustainable".
Berlin changes course
Two years ago Germany declined to back anti-subsidy duties on Chinese electric vehicles. An EU diplomat told the FT that Berlin was pragmatic while China bought its cars and machinery, and a German official cited falling exports to China and surging imports as the trigger. Officially Berlin still refrains from naming China.
Existing tools
The letter also asks the Commission to use its current instruments more. Vice-president Stéphane Séjourné told Le Monde that the EU uses them at only 10 to 30 per cent of capacity.
Beijing objects
China's commerce ministry said protectionism cannot enhance competitiveness and decoupling hurts all, according to Global Times headlines. China's foreign ministry urged the EU to work with Beijing in the same direction.