Europe pivots toward a confrontational stance on China

The shift in sentiment is driven by stark economic realities. Since 2021, Chinese exports to the EU have climbed by 6% annually, while imports from the bloc have dropped by 2.5%, according to the Bruegel think tank. With China now controlling nearly 30% of global manufacturing, European leaders fear a wave of deindustrialization that is already contributing to political instability. In Germany, the loss of over 124,000 industrial jobs last year has provided fertile ground for far-right gains, forcing a sense of urgency into the corridors of the European Commission.

Five member states, including France and Italy, are now pushing for a new, cross-sector trade defense tool. Unlike existing instruments that are often bogged down by months of investigation, this proposal aims to trigger rapid action when market distortions reach specific thresholds. While Beijing has warned that such barriers would only inflate costs for European consumers, officials in Brussels argue that the era of treating China as a benign economic opportunity is over. The challenge now lies in overcoming internal fragmentation, as member states remain divided on whether to prioritize short-term investment or long-term strategic autonomy.