Business · Malaysia Bureau
France, Germany push EU for stronger trade defences against China
France and Germany are calling for the European Union to develop new trade instruments to protect member states from economic coercion. The proposed tools would allow the bloc to respond swiftly to supply chain disruptions or trade pressures from major trading partners.
LSN Malaysia ·

France and Germany have urged the European Union to establish additional trade mechanisms designed to counter potential economic pressure from China and other major trading powers. The two nations argue that the EU requires more flexible instruments to defend its interests in an increasingly competitive global marketplace.
The proposed measures would equip the bloc with rapid-response capabilities to address various forms of trade disruption. Such tools could be deployed in scenarios where countries restrict supplies of critical raw materials or employ other tactics to exert economic leverage over EU member states.
The initiative reflects growing concerns among European policymakers about supply chain vulnerabilities and the need for greater strategic autonomy. The proposal comes amid broader EU efforts to strengthen economic resilience and reduce dependence on single external sources for essential goods and materials.
The call for enhanced trade defences underscores tensions between Europe and China over issues ranging from market access to technology competition. EU officials have indicated that new mechanisms would complement existing trade rules while maintaining the bloc's commitment to multilateral trading frameworks.