The European Union (EU) is considering measures to restrict imports of chemical products, furniture, and machinery, following hybrid cars from China. As an influx of low-priced Chinese goods has strained European corporations, it is seen as weighing options to cap import volumes or impose a tariff on products exceeding a set quota.
An employee inspects a fermentation tank used to produce penicillin at the Sandoz plant in Kundl, Austria. /Courtesy of Yonhap News Agency
On the 26th local time, Bloomberg News reported, citing people familiar with the matter, that the European Commission could announce additional import restrictions as early as the first quarter of 2027. The commission is currently analyzing trade statistics to identify sectors with surging imports. Chemical products, furniture, and machinery are understood to be under review.
The EU is referencing the recent case of import limits on hybrid cars agreed with China. The two sides agreed to cap annual EU imports of Chinese hybrid cars at 350,000 units. The measure will apply for four years, and the quota allocated to China will increase by 6% each year after the first year. The commission is preparing detailed plans with implementation targeted for Dec.
Additional steps also under discussion include directly limiting import volumes or imposing a tariff on goods that exceed the set quota. The EU can introduce the measures without China’s consent. However, according to Bloomberg, the new measures will be aligned with World Trade Organization (WTO) rules and applied to countries outside the European Economic Area (EEA) beyond China.
The EU is moving to broaden import restrictions because its trade deficit with China is widening. Last year, the EU’s trade deficit with China reached €360 billion (533 trillion won). The EU says Chinese products are flooding in, while European corporations face difficulties selling products in the Chinese market.
European Commission President Ursula von der Leyen said earlier this month, “Our industry called for action, and we heard that voice. We will respond, including additional emergency import restrictions.”
China is pushing back against the EU’s move. China’s Ministry of Commerce warned earlier this month that the EU should not think it can gain benefits through pressure, and should not underestimate China’s ability to protect its own interests. In the same month, China also launched an anti-dumping probe into EU-origin imports of para-nitrotoluene, a chemical used as a raw material for dyes and pharmaceuticals.
Meanwhile, the European Commission is preparing a system to respond more quickly if China imposes trade restrictions. Options under review include limiting access of certain goods and services to the EU market. EU trade chief Maroš Šefčovič plans to meet with the Chinese side early next year to discuss the results of negotiations so far and future steps.
※ This article has been translated by AI. Share your feedback here.