According to South China Morning Post, France and Germany—the European Union’s two largest economies—have jointly called for tougher EU trade defences ahead of critical negotiations with China this week.
Joint Call for New Trade Weapon
In the strongest sign yet of a shifting EU policy on China, the leaders of France and Germany have demanded a new trade instrument that would allow the immediate cutoff of market access for third countries causing severe economic distortions. The proposal grants dramatic new powers to the European Commission, the EU’s executive branch responsible for managing trade policy across its 27 member states. Both a joint policy paper and a letter addressed to European Commission President Ursula von der Leyen outline the strategy; the South China Morning Post confirmed it has reviewed both documents.
€1 Billion Daily Surplus Drives Urgency
The push comes as EU negotiators prepare for crunch talks in Beijing starting Thursday, under pressure to deliver concrete action before the EU’s mid-October deadline. A key concern cited is China’s €1 billion (US$1.2 billion) per day trade surplus with the EU. This imbalance underscores the urgency behind calls for new enforcement tools. German leader Friedrich Merz’s public shift toward supporting trade defences may directly influence the tone and scope of the upcoming discussions.
Supply Chain Diversification Tool Backed
France and Germany also endorsed a supply-chain diversification tool designed to reduce the EU’s reliance on China for critical minerals. These materials are essential for manufacturing cars, defence equipment, and other electronic devices. While both China and the EU likely wish to avoid a full-scale trade war, Merz’s pivot increases the possibility of such an outcome. The joint initiative reflects growing strategic alignment between Europe’s two largest economies on economic security matters.
Source: South China Morning Post
Compiled from international media by the SCI.AI editorial team.
