Ursula von der Leyen, President of the European Commission, is working to support the European chemical and machinery industries against competition from China by imposing restrictions. This action will be discussed in a meeting with European Union leaders scheduled for Thursday.
Protection of European Industries
According to informed sources, the European Commission is looking to utilize protective measures as the most effective tool to support these two sectors. These measures have gained attention due to their potential for rapid and widespread implementation. Last week, Maroš Šefčovič, the Trade Commissioner, signed an agreement with Beijing that limits annual imports of Chinese hybrid vehicles to 350,000 units next year; this figure is less than half of the expected deliveries for this year.
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Increase in Chinese Exports and Its Impact on the European Union
European governments have called for support for more sectors of Chinese imports as the bilateral trade deficit continues to rise. China became the world's largest exporter of machine tools in 2025, with Chinese exports increasing to 8.6 billion euros, while German exports fell by 10% to 7 billion euros. In the chemical industries, China has also doubled its share of EU imports over the past decade, reaching 18% of total imports.
Maroš Šefčovič stated in remarks made last week in Beijing that the agreement on hybrid vehicles would serve as a "roadmap" for other sectors. A senior Commission official announced on Monday that the Commission has also received complaints regarding Chinese imports from the wind and furniture industries.
Protective measures for hybrid vehicles, which include import quotas and tariffs for volumes exceeding this amount, must be ready by December. Šefčovič also emphasized that these measures comply with World Trade Organization rules.
Upcoming Challenges for Trade Agreements
However, it is unclear whether the proposal for new protective measures regarding the chemical and machinery industries has been agreed upon with Chinese officials. Some analysts have warned that Beijing may resist any new trade restrictions. Lin Song, chief economist for China at ING Bank, stated that the agreement to reduce hybrid vehicle imports is an exception and is not expected to be replicated by China in other sectors.
Song added, "China ultimately needs to draw a line. It is unlikely that we will see such restrictions on many products. China does not want to create such a precedent for the future." He also noted that Beijing has been open to negotiations regarding hybrid vehicles due to the high volume of imports this year.
Commission officials are working on protective measures for plastics and epoxy resins, but no research that would precede any trade action has officially begun.
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