European Union leaders have formally asked the European Commission to assess and expand the bloc's trade defence arsenal, targeting China's alleged unfair trade practices — including the large-scale dumping of subsidised goods into European markets, according to a report by Politico. The directive emerged from a recent EU summit, where consensus reportedly solidified around the need for both short-term tool optimisation and the development of new protective instruments.

What Leaders Demanded

Officials and diplomats briefed on the summit discussions — speaking on condition of anonymity given the confidential nature of the proceedings — said the mood around the table had shifted decisively toward stronger trade defences. According to the report, leaders requested that the Commission evaluate existing trade defence tools and eventually develop new instruments to ensure the EU can protect its economic interests against practices critics describe as structurally unfair.

A second official noted there would be a 'short term analysis of existing tools and how to be used in a more efficient way,' while cautioning that developing entirely new instruments would require time and a full legislative process.

The China Problem: Excess Capacity and Cheap Exports

At the heart of the dispute is China's industrial overcapacity. According to the report, China produces far more goods — including electric vehicles and other high-end manufactured products — than its domestic market can absorb, owing to insufficient internal demand. The surplus is then exported at prices that European producers reportedly cannot match, pushing some out of business entirely.

Commission President Ursula von der Leyen reportedly used the summit to gauge how far EU leaders were prepared to accept potential Chinese retaliation — a critical question as the bloc weighs how aggressively to shield European factories from lower-cost Chinese competition.

What the Leaders Said

Belgian Prime Minister Bart De Wever was among the most direct after the summit concluded. 'Everyone believes we need measures to reduce our dependence,' he told Politico. 'And the subsidies provided in China — that's not fair. We need a response to that. The Commission intends to propose measures, and we'll continue to discuss this.'

Notably, leaders also stressed that engagement with Beijing should continue alongside any defensive measures. Chinese Commerce Minister Wang Wentao is scheduled to visit Brussels at the end of June for talks with EU trade chief Maroš Šefčovič — a diplomatic channel the EU appears keen to keep open even as it hardens its trade stance.

What Comes Next

The Commission is expected to first conduct a near-term review of how existing trade defence tools can be deployed more efficiently, before moving toward any new legislative proposals. Industry groups and member states with heavy manufacturing exposure — particularly in the automotive and clean-energy sectors — will be watching closely. The outcome of the Wang Wentao–Šefčovič meeting in Brussels could shape the pace and tone of any formal measures that follow.