EU ministers said the bloc should continue discussions with Beijing and extend a deal limiting imports of Chinese hybrid vehicles to other sectors. The EU’s goods trade deficit with China exceeded €370 billion in 2025 and is on course to surpass €400 billion this year.
European Union ministers said the bloc should press ahead with discussions with Beijing and expand a deal to limit imports of Chinese hybrid vehicles to other sectors. The agreement, struck earlier this month, also includes China cutting tariffs on €4 billion of EU exports and easing export licences for rare earths. Trade Commissioner Maros Sefcovic and Chinese Commerce Minister Wang Wentao have agreed to meet again in March.
The EU has 22 investigations targeting China, alone or with other countries, among 25 new anti-dumping and anti-subsidy investigations underway. The bloc has imposed additional tariffs of up to 35.3% on Chinese electric vehicles. Safeguards, which can set import quotas and apply tariffs above those limits, have so far been used only for steel products and ferro-alloys; pending or possible cases include PET, chemical composites, other chemicals and machinery.
France and Germany proposed a rapid-action measure to respond to countries that harm the bloc by restricting access to the EU single market. The European Commission has agreed to propose the measure, dubbed a “kill switch,” but its timing is unclear. In December, it plans to propose a diversification instrument to limit reliance on single sources for critical supplies, as well as a solidarity package to support EU members or sectors hit by foreign trade measures.
