Q: 

Regarding the council meeting, what is the CCCEU's immediate response to the EU's plans to introduce new trade defence tools? And how are Chinese businesses preparing for it?

A:

We are closely following the European Commission's plans to develop new trade defence instruments, including a possible diversification instrument, and have expressed our concerns.

The Chamber believes that China-EU trade is driven by market demand and the complementary strengths of our economies. The competitiveness of Chinese manufacturing stems from innovation, efficient supply chains and intense market competition, rather than subsidies. Rising imports from China ultimately reflect choices made by European businesses and consumers.

It is also important to look at the broader picture.

First, the Single Market remains the backbone of Europe's economy. In 2025, intra-EU trade in goods exceeded €4 trillion—more than five times the volume of EU-China goods trade. Intra-EU flows of goods, capital and talent are often more influential in shaping competitiveness than trade with any single external partner.

Second, while the EU records a deficit in goods trade with China, the EU as a whole recorded a surplus of around €140 billion in its external trade in goods in 2025. Moreover, Chinese exports to Europe are increasingly concentrated in machinery, electrical equipment, industrial components and other products that are deeply integrated into European production networks. We believe these imports are not replacing European production; they are supporting it.

Last but not least, although the EU records a deficit in goods trade with China, the bloc has long enjoyed a surplus in services trade with China.

There is a risk that the current discussion becomes overly focused on external partners and goods trade, while the more fundamental drivers of Europe's competitiveness deserve equal attention. Focusing solely on the EU-China bilateral goods trade balance does not fully capture the mutually beneficial and complementary nature of the economic relationship.

Against this backdrop, it is regrettable that the EU continues to develop new trade tools targeting China, which risk creating additional uncertainty for businesses and investors.

The CCCEU's annual business survey over the past seven consecutive years shows that Europe's importance as an overseas market for Chinese companies has continued to grow. Despite the challenges posed by an increasingly complex regulatory and trade environment, Chinese companies remain committed to the European market and will continue investing, creating jobs and contributing to Europe's green and digital transition.

We hope that both sides will address trade frictions through dialogue and consultation. Unilateral trade measures risk provoking retaliatory actions and creating a cycle of escalating tensions that serves neither side's interests. At a time of growing global uncertainty, China and the EU should work together to preserve an open, predictable and rules-based trading environment.