Brussels fires starting gun on tougher China trade policy, as Beijing vows retaliation

The European Commission agreed on a tough new approach to China" class="entity-link entity-topic" data-entity-id="136730" data-entity-type="topic">trade relations with China, at a rare Beijing-focused debate among Brussels’ leadership on Friday.In a presentation, trade chief Maros Sefcovic laid out why the bloc needed to take stronger steps to defend itself from what is described as a new “China-shock" class="entity-link entity-topic" data-entity-id="129836" data-entity-type="topic">China shock” to its industries, according to people briefed on the event.This may require developing a new instrument to compel companies in critical sectors to expand both the number and the locations of the suppliers they use. Sefcovic is also expected to ramp up the use of safeguard measures in sectors that are under severe pressure from Chinese overcapacity.