EU Chief Warns of Trade Curbs on China After Talks

Dragon Media Newsroom
European Commission President Ursula von der Leyen has warned of possible new trade restrictions on China, soon after the European Union and China reached several understandings in trade talks. Chinese analysts say such pressure could undermine mutual trust without resolving Europe’s industrial challenges.
Addressing the European Parliament on Wednesday, von der Leyen said the bloc should be ready to use trade defense measures if dialogue failed to produce results. She called for swift safeguards when rising imports threaten European industries. The Commission is also preparing a package to reduce reliance on single suppliers and a new mechanism to restrict access to the EU market.
China’s Ministry of Commerce said the October 8–9 trade talks in Beijing produced agreement on 16 points across four areas. These included further discussions on the EU’s anti-subsidy investigation into Chinese electric vehicles and an understanding on trade in China-made hybrid vehicles. Von der Leyen also acknowledged that the talks had brought greater predictability regarding China’s rare-earth export controls.
Wang Yiwei, director of the Center for European Studies at Renmin University of China, said Europe was using tougher trade rhetoric as it struggled to respond to the progress of Chinese manufacturers in electric vehicles and other emerging industries. Trade restrictions might offer temporary relief, he said, but would not deliver the technological advances or industrial transformation needed for long-term growth.
Shi Xiaoli, a professor at China University of Political Science and Law, said the proposed restrictions were based on subjective assumptions rather than sufficient evidence. Chinese manufacturers’ competitiveness, she said, came from innovation and a complete industrial supply chain. She added that the measures could be discriminatory and may not comply with World Trade Organization rules.
Concerns over the potential costs of further restrictions have also been voiced in Europe. German Chancellor Friedrich Merz backed stronger trade defense measures but said the EU wanted a new balance in trade, not a conflict with China. Mercedes-Benz CEO Ola Källenius warned that restrictions could raise production costs and disrupt supply chains. BusinessEurope, a leading European business organization, has urged the bloc to clearly distinguish security-sensitive trade from ordinary commercial competition.
China’s Ministry of Commerce said both sides should make a sincere effort to resolve differences through dialogue. It warned that the EU should not expect to secure benefits through pressure and said China would defend its interests.
Channels for engagement remain open. A 12-member delegation from the European Parliament’s Committee on International Trade is scheduled to visit China from October 27 to 29 to discuss market access, industrial subsidies, supply chains and critical raw materials. The two sides have also agreed to hold a ministerial-level video meeting in January 2027, followed by the third meeting of their Trade and Investment Consultation Mechanism in March.





