EU's largest political group doesn't want confrontation with China

The European People's Party (EPP), the largest political group in the European Union, is cautious about engaging in conflict with China. In a forthcoming paper, senior EPP lawmakers aim to advocate for a balanced approach to rebalancing economic relations with China, avoiding open confrontation or full decoupling. The EPP, which holds the most MEPs in the European Parliament and 14 out of 27 commissioners in the European Commission, is concerned about the EU's growing trade deficit with Beijing.

This deficit results from Chinese industrial overcapacity and subsidies that undermine European competitors.

EU officials have set October as the deadline to secure concessions from China, after which harsher measures may be imposed by the European Commission. EPP MEPs on the International Trade Committee are preparing a position paper due for completion by mid-October, following the next European Council summit. The paper covers four key areas: rebalancing trade and investment, export control measures, intellectual property rights, and reform of the World Trade Organisation.

It proposes a balanced approach that promotes dialogue with China while more forcefully defending European economic interests.

EPP lawmakers argue for using existing economic leverage tools more effectively, implementing temporary trade measures to strengthen the EU's bargaining power, diversifying supply chains, and cutting dependency on critical raw materials. They also emphasize the need for tighter customs enforcement and closer oversight of e-commerce platforms.

Sectors such as aviation, semiconductors, pharmaceuticals, and biotechnology are identified as areas where the EU should develop its capabilities to reduce economic dependence on China.