Germany and France Demand EU Powers to Close Market to China
Germany and France have approached the European Union with a proposal to grant new powers for a complete closure of access to the single market in the event of destabilization of trade relations by China or other countries. This proposal is contained in an official letter addressed to European Commission President Ursula von der Leyen. The authors of the document emphasize the need to create a tool for systematic response, including the possibility of immediate disconnection from the internal market. The initiative is also aimed at reducing Europe’s dependence on foreign supply chains. Although China is not mentioned in the letter, the support from Berlin and Paris lends significance to the initiative ahead of the upcoming EU summit, where relations with China will be discussed. German officials view this tool as a means in the trade war that could be used, for example, to block the export of rare earth materials. The letter notes that the EU is facing challenges due to the weaponization of trade, which requires urgent action to diversify. Additionally, Paris and Berlin insist on expanding investigations into unfair competition, proposing to check entire sectors of the economy, such as the chemical industry and plastics production. The EU's trade deficit with China last year amounted to €360.6 billion and continues to grow.
-- Price
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