Germany and France seek EU trade weapon against China
Paris and Berlin ask Brussels for faster powers to respond to serious market distortions.
Germany and France want the European Commission to receive new powers to respond more quickly to trade distortions caused by third countries. In a proposal to Commission President Ursula von der Leyen, the two countries name China as the main impetus, but the proposed instrument would formally apply to all countries.
The Franco-German call is set out in a letter and an accompanying policy document sent to Brussels on Monday. In them, President Emmanuel Macron and Chancellor Friedrich Merz call for an instrument allowing the EU, in serious cases, to restrict access to the single market.
This is not yet a decision by the European Union. The proposals must be discussed with the other member states and ultimately developed through the European procedures. According to reports, the European Council will discuss relations with China next week.
Paris and Berlin want the Commission to be able to act more quickly when, in their view, a third country causes structural market distortions. They are thinking of subsidies, overcapacity, pressure on European companies and possible manipulation of exchange rates. The proposed measure should be country-neutral, so that it cannot be used exclusively against China.
One striking element is decision-making by reverse qualified majority. The Commission could then activate a measure unless a qualified majority of member states blocked it. Germany and France also mention faster anti-dumping procedures, supplier diversification and an inventory of possible Chinese countermeasures.
The initiative fits into a broader shift in European China policy. The EU is seeking to reduce economic dependencies without completely severing trade relations. Eurostat reported that the EU's deficit in goods trade with China rose to €103 billion in the second quarter of 2026.
For Dutch companies, the discussion could affect import conditions, supply chains and competition in the European market. The outcome is still uncertain: member states may dilute, expand or replace the proposal with existing trade instruments.
One story, several perspectives
What is established
- Germany and France have asked the European Commission for new trade instruments.
- The proposal is not yet adopted EU policy.
- The proposed instrument could also be used beyond China.
- According to Eurostat, the EU's goods trade deficit with China amounted to €103 billion in the second quarter of 2026.
Left
Arguments The EU must prevent European workers and public investment from being undermined by foreign subsidies and overcapacity. Trade power should be used to protect labour standards, climate goals and strategic autonomy.
Values Protection of workers, fair competition, public direction and less dependence on major power blocs.
Consequences Without intervention, jobs and industry could disappear; overly tough trade measures could cause consumers to pay more and make international cooperation more difficult.
Centre
Arguments Europe needs a credible defensive instrument, but must use it proportionately and according to established procedures. Diversification and negotiations should be preferred to an immediate trade rupture.
Values Institutional control, predictability, European unity and economic stability.
Consequences A carefully designed instrument can strengthen the negotiating position; unclear rules or overly rapid deployment could make companies uncertain and increase divisions between member states.
Right
Arguments The EU must protect its own market and strategic sectors against state aid and economic coercion. European producers should not be driven out of the market by countries that operate under different rules.
Values National and European economic security, domestic industry, order and reciprocity.
Consequences A strong countermeasure could protect production and jobs in Europe; a trade war could affect exporters, consumers and supply chains.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
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The text describes a proposal and does not present it as adopted policy. The main procedural and economic claims can be found in open reporting, official statements and Eurostat.
- confirmed Germany and France have asked Brussels for new trade powers. — Described by Euronews on the basis of the letter and policy document. source
- confirmed The instrument would formally apply to all third countries. — The proposal is described in reporting as country agnostic. source
- confirmed Reverse qualified majority voting is proposed. — Mentioned in the policy document as presented by Euronews. source
- confirmed The EU's goods trade deficit with China amounted to €103 billion in the second quarter of 2026. — Eurostat gives this figure in the statistical commentary. source
Editor's note
The letter and policy document are available through open reporting; the proposals are not yet an EU decision. The trade deficit figure comes from Eurostat and concerns goods trade in the second quarter of 2026.Sources
- Germany and France agree new trade tool to counter China — Euronews
- Pressekonferenz von Kanzler Merz nach Deutsch-Französischem Ministerrat — Bundesregierung Deutschland
- EU trade with China - latest developments — Eurostat
More on this in Dutch media
- NU.nl — „china duitsland”
- De Telegraaf — „china duitsland”
- AD — „china duitsland”