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Current Affairs

Europe rallies around tough new China strategy ahead of key summit

From free marketeers to long-term interventionists, EU countries of all stripes are converging on the need for urgent action to prevent a Chinese-driven European deindustrialisation…

By Samantha Johnson / June 17, 2026

From free marketeers to long-term interventionists, EU countries of all stripes are converging on the need for urgent action to prevent a Chinese-driven European deindustrialisation ahead of a key summit in Brussels, multiple sources said on Wednesday.

A broad coalition of members now support the development of a tough new trade strategy that could involve multiple new instruments and a more rapid-fire, strategic use of existing weapons.

One of the tools could be modelled on US President Donald Trump’s Section 301 tariff measures, which have been used against both the EU and China. The idea was first floated by French President Emmanuel Macron, and while there are still concerns over its compatibility with global trading rules, others have expressed interest.

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“There are different strands: a diversification instrument and a more protective instrument. There’s work to be done to see how both can be combined – this is why the commission needs guidance from leaders to find a compromise,” said a senior diplomat from a supportive member state, who, like many, spoke on condition of anonymity because policy is still evolving.

“Macron called for a ‘Section 301’ as a metaphor for an overcapacity instrument – this will be part of our discussion to see what it will be,” they said, adding that while “China is a problem”, it would be preferable if the tool was “country neutral”.

Balancing trade and economic rivalry: the future of Sino-German relations

“There’s a link between overcapacity and subsidies – especially if we can’t do a proper investigation in third countries on what kind of subsidies they are using, we have to defend ourselves against that,” the diplomat continued.

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