Five EU Nations Push for Tougher Trade Measures Against China; Global Times Warns Against Trade War

Five EU nations, including Spain, have jointly drafted a document demanding tougher measures to combat China's industrial overcapacity. In response, China's Global Times published an editorial today claiming that the EU cannot afford a trade war with China, arguing that under global division of labor, China and Europe have already formed a pattern of complementary advantages and shared interests. According to the Financial Times and the South China Morning Post, the EU, facing increasing complaints from governments and industries regarding economic pressure from Chinese competition, will debate its policy toward China on the 29th. Prior to this, Spain, Italy, the Netherlands, France, and Lithuania jointly drafted a document stating that the EU must respond more aggressively to "systemic and structural industrial overcapacity," including the implementation of tariffs or import quotas. Reports also indicate that French President Emmanuel Macron has proposed imposing "Section 301 tariffs" similar to those of the United States. The Beijing-based Global Times stated in its editorial on the 26th that the current "China shock theory" stems from the EU's trade deficit with China reaching 360 billion euros in 2025. However, it argued that the growth in Chinese exports to Europe is concentrated in areas like electric vehicles, solar photovoltaics, and lithium batteries, which are exactly what the EU needs. European companies purchase cost-effective Chinese semi-finished products, process them into high-value-added end products, and sell them globally to earn significant profits, with this value-added gain not reflected in trade deficit statistics. The editorial also noted that in 2024, the EU's surplus in services trade with China exceeded 50 billion USD, with intellectual property royalties alone generating over 10 billion USD annually from China. The editorial claimed that the EU cannot afford a so-called "trade war with China" because mutual benefit is the essence of China-EU economic relations. It argued that trade protectionism cannot solve the inherent problems of declining European industrial competitiveness and sluggish economic growth, and would only cause Europe to miss opportunities again. The editorial stated that the meeting on the 29th should not be a mobilization order for a trade war, but an opportunity to rationally assess risks and seek a pragmatic path.