E.U. May be Joining Others in Harder Line Toward China Trade

Jun. 10, 2026
By: Pietro N. Bianchi

As the United States takes steps intended to reduce its reliance on Chinese exports, the European Union seems to be growing more concerned that excess Chinese capacity is shifting focus to its direction. This follows in the wake of actions by other countries, including Mexico (across a broad range of goods) and Vietnam (mostly using AD/CVD), to insulate their domestic markets from Chinese imports.

This growing concern in Europe was reflected by E.U. Trade Commissioner Maros Sefcovic at the Brussels Economic Security Forum (BESF) Summit. Commissioner Sefcovic stated that “recent industrial cases, in particular supplies of chips and rare earths, have reinforced my conviction that a step change [in trade policy] is necessary.” He stated that the E.U. needs to address global overcapacity, and particularly its relationship with China. After questioning whether the E.U.’s existing trade‑defense toolbox is fit for this challenge, he noted that its steel safeguard regime did not deliver results. Rather, it resulted in major job and capacity losses. Conversely, the E.U.’s unpopular LNG terminal investments were critical in reducing reliance on Russian gas when it started the war with Ukraine. Commissioner Sefcovic stated that “every high-risk sector must be weaned off single-supplier dependence” and argued that “diversification now requires a dedicated instrument.”

While Commissioner Sefcovic did not mention a specific instrument, his larger trade policy goals appear to offer some insight. He advocated for major WTO reform, stating WTO members’ rights and obligations are out of balance. He criticized how a WTO member must tariff every member when it wants to address the overcapacity of only one other member and called for an “honest discussion about MFN.” Most-Favored-Nation tariffs are non-discriminatory duties that the WTO requires its members to charge all others so that every member receives the same baseline rate. Recent comments by Denis Redonnet, the E.U. Directorate-General for Trade and Economic Security, appear to offer further insight. Directorate-General Redonnet reportedly advocated that traditional trade instruments, such as antidumping and countervailing duties, are too narrow in scope and too late in the cycle of trade distortions to address the intense trade distortions created by China, which can affect entire segments of supply chains.

While the trade actions by the United States and other countries are meaningful, the European Union is China’s second largest export market. A change in the ease of exporting to Europe could have global consequences for trade from China, as well as creating opportunities for other countries to export. Please contact an attorney at Barnes Richardson, & Colburn LLP if you have any questions about trade policies and developments.