EU Prepares Trade Crackdown on Subsidized Chinese Imports

The European Commission is preparing a major crackdown on subsidized Chinese imports to prevent the collapse of domestic factories facing a flood of inexpensive goods. President Ursula von der Leyen and industrial strategy chief Stéphane Séjourné are pushing for measures to protect European industry from what they describe as a predatory export strategy. This effort coincides with the unveiling of the European Technological Sovereignty Package, designed to reduce structural dependencies in artificial intelligence, cloud computing, and semiconductors.

China has responded with warnings of resolute countermeasures and retaliation. Foreign Ministry spokesperson Mao Ning urged the European Union to adopt a rational approach to trade, arguing that protectionism violates economic laws. Ning cited a survey from the European Union Chamber of Commerce in China showing that 68 percent of European firms intend to maintain or expand their presence in China, claiming this contradicts the EU's de-risking narrative.

These trade frictions emerge as the EU navigates internal divisions, with Germany prioritizing market access and Spain welcoming Chinese investment. Meanwhile, the European Union remains somewhat sidelined by bilateral dealmaking between the United States and China, including recent high-level aircraft agreements. The escalating economic imbalances and trade disputes are expected to be central agenda items at the upcoming G7 Summit.