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Angeles draws outrage in CaliforniaReflection AI and Mistral unveil new models to compete with Chinese rivalsSouth Korea prepares response to force North Korean apology over DMZ blastDeepSeek to raise at least $12bn in Tencent-backed roundEU Commission proposes 15-year probation and fewer vetoes for new membersIsrael puts army on alert and threatens Gaza ahead of October 7 anniversaryGaza ceasefire a year on: Trump plan stalled, UN chief says truce falls shortFrance test-fires new M51.3 nuclear missileUK threatens to expel Israeli diplomats if Jerusalem consulate closesFrancis Halzen wins 2026 Nobel Prize in Physics for neutrino workUS envoy meets Sudan army chief in Egypt in bid to end the warJapan's 10-year yield tops 3% as fiscal fears growUK weighs tariffs on Chinese EVsKosovo deadlock deepens as protests over Specialist Chambers law turn violentPakistan PM invites Imran Khan's party to talks, urges end to marchGoogle ordered to halt Finland data centre workIndia-US trade talks stall againDisney and FCC dispute over broadcast licences moves to courtYemeni government claims gains near Bab el-Mandeb as Houthis hit Saudi airportsKenya confirms first Ebola death, imported from CongoTwo killed as about 650 Ukrainian drones target Moscow regionGulf oil flows recover as Iran keeps attacking tankersFrench bond selloff weighs on euro as Le Pen unveils spending cutsFormer BND chief Hanning arrested on suspicion of selling secretsFrench school protests reach new scale as unions join and Macron calls crisis meetingDrones sink cargo ship in Bulgaria's Black Sea zone as attacks on shipping widenFighting spreads in Tigray as Ethiopia-Eritrea war risk growsWHO rates plague risk low as Russia denies outbreakAfD takes Saxony-Anhalt parliament presidency with four unexplained extra votesSaudi Arabia, Pakistan and Turkey activate Mecca defence pact over Houthi attacksSeventh arrest over Fairford plot as US and UK differ on the threatKremlin threatens retaliation after Lithuania moves to lift nuclear weapons banBolsonaro family gains strength as Lula retools for Brazil runoffOpposition leaders briefly detained at march on Indian Election CommissionZelensky warns of massive Russian attack as strikes hit Kharkiv, Zaporizhzhia and KyivGermany and France call for EU tool to close market to China, Beijing objectsUS Treasury yields ease from 2002 highs as oil dipsSouth Korea probes AI use in bank hacks after data exposed at seven firmsMali army retakes Kidal as Tuareg rebels withdrawNew York declares disaster emergency as US measles cases near 3,900Floods in Dakar kill residentsSpain re-approves housing decrees and lifts Puigdemont warrant as campaign beginsParamount completes $111bn takeover of Warner Bros DiscoveryTrump approves firing-squad execution of Fort Hood shooter Nidal HasanS&P 500 hits record high as AI chip stocks rallySeparatist Parti Québécois wins Quebec election, promises independence referendumOpenAI apologises to Australian parliament over agent access to government sitesTrump's remark that Iran could 'take out' Los Angeles draws outrage in CaliforniaReflection AI and Mistral unveil new models to compete with Chinese rivalsSouth Korea prepares response to force North Korean apology over DMZ blastDeepSeek to raise at least $12bn in Tencent-backed roundEU Commission proposes 15-year probation and fewer vetoes for new membersIsrael puts army on alert and threatens Gaza ahead of October 7 anniversaryGaza ceasefire a year on: Trump plan stalled, UN chief says truce falls shortFrance test-fires new M51.3 nuclear missileUK threatens to expel Israeli diplomats if Jerusalem consulate closesFrancis Halzen wins 2026 Nobel Prize in Physics for neutrino workUS envoy meets Sudan army chief in Egypt in bid to end the warJapan's 10-year yield tops 3% as fiscal fears growUK weighs tariffs on Chinese EVsKosovo deadlock deepens as protests over Specialist Chambers law turn violentPakistan PM invites Imran Khan's party to talks, urges end to marchGoogle ordered to halt Finland data centre workIndia-US trade talks stall againDisney and FCC dispute over broadcast licences moves to court
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Symbolic image: Germany and France call for EU tool to close market to China, Beijing objectsSymbolic image

Germany and France call for EU tool to close market to China, Beijing objects

6 sources

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.

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