In the strongest sign yet of a shifting European Union policy on China, the leaders of France and Germany have demanded a new trade weapon that would cut off access to the EU market when third countries cause severe distortions.
The tool would effectively act as a kill switch, allowing Brussels to respond rapidly to systemic distortions, potentially immediately. It would grant dramatic new powers to the European Commission, the EU’s executive branch, which manages trade policy for the 27-member union.
The strategy was laid out in a joint paper written by the bloc’s two largest members, as well as a letter to European Commission President Ursula von der Leyen – both of which have been seen by the South China Morning Post – ahead of a crucial period of EU-China negotiations.
“We need a credible instrument in the hands of the Commission to allow for decisive and systemic reaction, i.e. activation by reversed qualified majority, and for powerful measures up to an immediate cut-off from the internal market if needed,” the letter, signed by German Chancellor Friedrich Merz and French President Emmanuel Macron, said.