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Ukrainian drones hit Russian sitesHouthi missiles kill five in Aden as Taiz siege nearsAI borrowing fears spread from CoreWeave to chips and US banksBystander stops Oregon school shooting that killed three children and a teacherChina proposes export controls on 40 technologies in AI, biotech and solarEthiopia installs interim Tigray administration after army pushes back TPLFPakistan orders school inspections after Peshawar roof collapseIndonesia to accept foreign help after four die fighting worst fires in a decadeCentral banks push back on rate-hike bets as Warsh gives no October signalIndonesian stocks plunge after MSCI warns of downgradeMany feared dead after petrol tanker explodes at Benin City marketSearch resumes for seven missing sailors after Black Sea drone attackMajor hurricane Trudy strengthens as it nears Mexico's Pacific coastSettlers beat Washington Post photographer in West Bank olive harvest attacksFrance and Germany soften 2035 combustion ban in exchange for 'Made in EU' rulesEU leaders back new trade instrument against China as Beijing warns of responseIsrael halts commercial goods into Gaza as UNICEF warns malnutrition gains are fragileAlbanian protests spread beyond Tirana as injuries mountIMF chief urges AI safeguards as banks and Tencent rein in agentsFrench police accused of war-like injuries to teenagers as school protests spread across EuropeBolsonaro keeps narrow lead over Lula ahead of Brazil run-offDmitriev says Russian wealth fund will work with US on payment for diesel dealEU leaders struggle to agree on cutting energy prices as von der Leyen outlines six measuresTrump says US is in nuclear arms talks with Russia and China as Beijing rejects joiningIndian police detain Cockroach Janta Party founder before Delhi protestIMF urges Europe to grow faster or borrow less after bond turmoilECB approves UniCredit taking control of CommerzbankPope Leo urges Putin to agree to ceasefire in Oleshky as Putin backs Vatican aidPhilippines condemns Chinese envoy's 'thinly veiled threat' over use of forceCarney warns US is trying to break Canada ahead of Alberta voteItaly extends Schengen suspension with Spain after Ceuta influxUN demands end to Sudan drone attacks after deadly strike on goldminersIsraeli ad firm's ad-delivered spyware drew fresh scrutinyChina and North Korea open border bridge as analysts doubt trade boostTaiwan to curb AI chip exports to China under US trade dealRubio presses Lebanon over Hezbollah's seized explosivesHungary and Ukraine agree to reset ties as EU leaders back merit-based enlargementPakistan's parliament endorses emergency rule in Khyber PakhtunkhwaNorwegian teenager jailed for 20 years over Iran-linked murder plot in UKUS budget deficit nears $2 trillionIstanbul flood toll rises to four with five missingPope Leo to appear in public on Sunday after lung cancer surgeryRome prosecutors name Israeli minister Katz in Gaza flotilla torture probePutin puts more European firms' Russian assets under temporary managementNineteen countries condemn Colombia's Jerusalem embassy moveMauritius extends curfew amid its worst unrest in decadesKenya confirms third Ebola case as Africa CDC flags unaccounted Congo fundsChina criticises Japan after Takaichi hints at exceptions to non-nuclear principles
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Symbolic image: EU leaders back new trade instrument against China as Beijing warns of responseSymbolic image

EU leaders back new trade instrument against China as Beijing warns of response

6 sources

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.

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