Chinese overcapacity

The European Union is implementing a more robust trade policy towards China, driven by concerns over what is being termed a new "China shock" impacting its industries. This shift reflects a growing perception in Brussels that China's industrial overcapacity poses a significant threat to European businesses. Recent high-level debates within the European Commission have focused on developing stronger defensive measures against this perceived threat. The upcoming visit of China's Commerce Minister Wang Wentao to Brussels for talks with EU trade chief Maros Sefcovic underscores the heightened trade tensions and the urgency of addressing these issues. The EU's new approach signals a more assertive stance in its trade relations with China, aiming to protect its domestic market and industries from the effects of potentially subsidized or unfairly priced Chinese goods flooding the market.