New Delhi, May 26 (IANS) Major EU member countries are working towards taking stronger measures to prevent their economies from being hit by the flood of cheap goods from countries with “industrial overcapacity” such as China, according to a media report.

“A paper signed by Spain, Italy, the Netherlands, France, and Lithuania, days before a major China-focused debate in Brussels, said the bloc must respond more aggressively to ‘systemic and structural industrial overcapacity’ – phrases often taken as shorthand for Beijing,” the report in the South China Morning Post said.

The intervention comes as the European Commission prepares for a China policy orientation debate on Friday, designed to chart a new course in light of growing complaints from governments and industries about the economic pressure caused by Chinese competition.

The paper – which has not been released publicly and which was first reported on by the Financial Times – calls for much more aggressive use of EU safeguard measures for sector-wide disruption, rather than product-by-product anti-dumping cases.

These allow for tariffs or quotas to be imposed where import surges are seen to be harming local industry. They have been used sparingly in the past, notably to counter surges in Chinese steel and ferroalloys, which are products used in the steel industry.

The paper – seen by the South China Morning Post – floats the adoption of a new “resilience tool”, to be “activated when European supply sources are concentrated beyond a specified threshold”.

The combination of US tariffs and China’s “unfair trade practices has had a direct impact on the European industry, which lost 1 million jobs between 2019 and 2025”.

A separate report published last week by the Centre for European Reform estimated that more than 400,000 German jobs tied to exports to China may already have been lost to China, the report added.

The report pointed out that France’s President Emmanuel Macron on Friday called for a European “Section 301 tool”, in reference to a tariff mechanism used frequently against China by US President Donald Trump, but the inclusion of major member states, Italy, the Netherlands, and Spain, suggests broader support for a revamp in China policy.

–IANS

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