EU signals shift toward defensive trade stance against China

The European Commission is signaling an end to the era of purely diplomatic trade discourse. With Chinese industrial exports mounting pressure on European manufacturing, the bloc is weighing aggressive policy tools to combat what officials describe as a second “China shock.” European Trade Commissioner Maros Sefcovic has set an October deadline for Beijing to provide tangible progress in ongoing negotiations.

Beyond trade volume, the EU faces a strategic bottleneck in critical raw materials. Dependence on China for rare earth elements—essential for the defense and green energy sectors—has forced Brussels to plan a dedicated corporation to secure and stockpile these vital resources. This dual-track strategy aims to bolster domestic production while insulating European supply chains from external shocks. The coming months will test whether this leverage forces concessions from Beijing or triggers a more restrictive economic era between the two powers.