France, Germany push new EU trade weapon ahead of China talks

· Trade · European Union · China

German Chancellor Friedrich Merz and French President Emmanuel Macron urged the European Union to adopt new powers that could cut China or other countries off from the bloc's single market, risking a response from Beijing days before key talks on trade imbalances. They wrote to European Commission President Ursula von der Leyen calling for tougher mechanisms against unfair trade practices, naming no country but appearing to have China or the US in mind. The EU and China are due to hold Beijing talks to avert a trade war, with the EU toughening its stance in sectors including cars, chemicals and PET.

Why it matters:A new EU trade tool could escalate tensions with China and reshape global supply chains in cars, chemicals and clean tech.

Key points

  • Merz and Macron wrote to von der Leyen seeking a rapid-response trade tool.
  • The proposal could cut countries off from the EU single market.
  • EU-China talks in Beijing aim to avert a trade war over cars and chemicals.

Sources (original reporting)

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