Symbolic imageEU leaders back new trade instrument against China as Beijing warns of response
EU leaders backed a Franco-German call for a new instrument that could restrict Chinese access to the single market. The Commission is also preparing curbs on Chinese chemicals and machinery.
At the Brussels summit that began on Thursday, 15 October, leaders tasked the Commission with taking up the idea of a 'second-strike instrument', diplomats told FAZ. They said approval was unanimous, including from Spain, Hungary and Poland, which had been more sceptical of shielding the market. Commission President Ursula von der Leyen reportedly promised concrete proposals possibly as early as December. The tool would let the EU answer pressure from China or other states by partly or, in extreme cases, fully denying market access. The South China Morning Post calls it a trade 'kill switch' and ties it to a record bilateral trade deficit.
Chemicals and machinery next
According to FAZ, von der Leyen announced behind closed doors steps against imports of machinery and chemicals, where German industry suffers most. Trade Commissioner Maroš Šefčovič called the hybrid-car deal, which caps imports at an initial 350,000 vehicles, a blueprint; pharmaceuticals and wind turbines were also raised. The Commission says the dialogue with China resumes in January but it will keep working on safeguards meanwhile.
Commission would hold the lever
The design is open, and one option is to adapt the anti-coercion instrument. Unlike that tool, the Commission could act fairly independently, and member states would need a qualified majority to stop it. Separately, Brussels is drafting a diversification law with a possible 40 percent supplier threshold, which Berlin views critically if it binds companies directly.
Beijing warns against pressure
Bloomberg reports that China warned the EU not to underestimate its ability to fight on trade. Per its headline, Global Times says the commerce ministry cautioned against seeking gains through pressure and urged joint efforts for stable ties. Reuters headlines that China is ready to cooperate on global imbalances.
Other opinions
Chinese state-affiliated Global Times frames the move as EU pressure. A FAZ commentary calls Germany hypocritical, citing an IW estimate of a deficit with China above 100 billion euros in 2026.