Five European Union member states—Spain, Italy, the Netherlands, France, and Lithuania—have joined forces to demand more aggressive trade measures from the European Commission to counter China’s “systemic and structural industrial overcapacity,” the South China Morning Post (SCMP) reported.
According to a document obtained by the newspaper, which was signed just days ahead of an upcoming policy debate on China within the European Commission, the countries are pushing for faster emergency tariffs, expanded safeguards, and new enforcement powers to combat trade evasion.
The text specifically requests that Brussels make broader use of sector-wide safeguard measures instead of relying on slow, product-by-product anti-dumping investigations.
An anti-dumping measure is a trade defense tool used by governments to combat unfair competition. It occurs when a country exports goods to another market at prices significantly lower than those charged in its own domestic market.
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The joint proposal highlights that sector-wide safeguards would allow the EU to swiftly impose tariffs or quotas whenever sudden spikes in imports threaten local industries, a situation that has already severely impacted the European steel and iron alloy sectors.
Furthermore, the document suggests creating a “resilience tool” that could be triggered whenever European supply chains become overly concentrated on a single foreign source.
The initiative comes amid growing complaints from European governments and industries over the economic fallout of Chinese competition. It coincides with a new trade mechanism expected to be presented during a policy debate chaired by European Commission President Ursula von der Leyen. The mechanism would legally require importers in strategic sectors to diversify their suppliers.
France has previously advocated for an EU trade mechanism inspired by the tariff model used by the United States against China. Spain, despite its recent diplomatic rapprochement with Beijing, is also expected to back a more robust continental industrial policy.
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The Netherlands, traditionally a staunch defender of free trade, has shifted its stance to confront economic security threats directly, driven by concerns surrounding critical tech companies like semiconductor giant ASML.
Meanwhile, the position of Germany—the EU’s largest economy—remains uncertain. German Economy Minister Katherina Reiche is traveling to Beijing this week for talks with Chinese Commerce Minister Wang Wentao, accompanied by a delegation of corporate executives from German companies with major operations in China.
A study by the Centre for European Reform (CER) cited by the SCMP estimates that more than 400,000 German jobs linked to exports to China may have already been lost. According to the joint document, the combination of aggressive U.S. tariffs and China’s “unfair trade practices” led to the loss of 1 million industrial jobs across Europe between 2019 and 2025.
The text co-signed by the five nations describes a European Commission currently overwhelmed by anti-dumping and anti-subsidy complaints—the vast majority aimed at China. It argues that traditional investigations must be complemented by emergency safeguard measures that can be deployed much faster.
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The group also proposed applying countervailing duties at the corporate level rather than just by country or product, a move that could directly target Chinese subsidiaries operating globally.
Finally, the document calls for tougher measures against trade evasion to stop companies subject to EU tariffs from rerouting goods through third-party countries, urging that an overarching “economic security” mindset guide all future actions by the Commission.
“The risk of losing critical industrial capabilities and strategic sectors cannot be ignored,” the document warned.
