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Franco-German leaders demand EU readies China ‘kill switch’

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Paris and Berlin want Brussels to toughen its trade stance as negotiations with Beijing approach

France and Germany are pressing Brussels to take a tougher line on China by creating new powers that could rapidly shut foreign countries out of the EU market.

The proposal effectively tells Brussels to beef up its position as it prepares for negotiations with Beijing. It also marks a shift for Germany, which has traditionally been more cautious than France about restrictions on China because of German businesses’ reliance on the Chinese market.

European manufacturers complain that cheap Chinese imports, supported by government subsidies, are undercutting their businesses. Last year, the EU ran a roughly €360 billion ($400 billion) goods trade deficit with China. Beijing has rejected that explanation for its competitiveness.

Both sides have stepped up investigations into each other’s exports. On Saturday, Beijing opened a probe into a European chemical used in dyes, medicines, and pesticides, following complaints from Chinese producers. The move followed three recent EU investigations into Chinese chemicals.

The anti-dumping probes examine whether goods are being exported at unfairly low prices and harming local producers. The investigations can lead to additional import taxes to protect businesses.

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