EU Weighs China Curbs as Trade Gap Hits €359.9 Billion
Updated
Updated · Euronews · May 18
EU Weighs China Curbs as Trade Gap Hits €359.9 Billion
7 articles · Updated · Euronews · May 18
EU commissioners will debate on May 29 a package of defenses against surging Chinese imports, with options ranging from supplier-diversification rules to tariffs, anti-dumping duties and the bloc’s anti-coercion instrument.
China’s surplus with the EU-27 reached $113 billion in January-April, up from $91 billion a year earlier, while the EU’s 2025 trade deficit with China had already widened to €359.9 billion.
A draft plan would cap purchases from any one critical-component supplier at roughly 30%-40% and require at least three suppliers, after China curbed exports of rare earths and chips last year.
Strategic sectors are also in focus: steel already faces new quotas and doubled tariffs, chemicals imports from China have jumped 81% in five years, and anti-subsidy cases can take up to 18 months with only about 140 DG Trade officials.
Brussels still faces retaliation risks and internal splits, with Germany and Spain wary of tougher China measures and telecom operators resisting costly phase-outs of Huawei and ZTE equipment without compensation.
As Europe mandates supply chain shifts, are its companies walking into a legal trap set by Beijing's new retaliation laws?
Can the EU's diversification plan succeed when China controls 92% of the world's rare earth production?
As the EU forces firms to drop Chinese suppliers, could this spark a new geopolitical gold rush for deep-sea minerals?
The EU’s 2026 Supply Chain Mandate: Reducing China and Russia Reliance for Strategic Autonomy
Overview
The European Union is introducing a new supply chain mandate that turns diversification from a goal into a regulatory requirement, driven by concerns over its dependence on China for critical minerals and lessons from the 2022 energy crisis. The policy aims to reduce risks linked to over-reliance on Russian natural gas, which previously led to economic and security challenges when used as a tool of coercion. Building on existing frameworks like the Critical Raw Materials Act and the European Chips Act, the new rules target sensitive sectors and require companies to prove their supply chains are not overly dependent on single countries, especially China.