Already imposed and proposed European Union trade measures could affect up to 27% of China’s annual exports to European countries, Goldman Sachs Group Inc. analysts conclude in a report cited by Bloomberg. Against the backdrop of a relative stabilization in Beijing‑Washington ties, confrontation between China and Brussels is intensifying over a record trade imbalance that EU leaders increasingly view as a direct strategic threat.
Europe accounts for about 15% of China’s total exports, making possible EU trade barriers a key external economic risk for Beijing. According to Goldman Sachs, measures under consideration in Brussels include new tariffs on plug-in hybrid electric vehicles (PHEVs) and higher environmental levies on mass‑market goods produced in breach of strict carbon and climate standards. At the same time, the German Mechanical Engineering Industry Association (VDMA) is urging Berlin to introduce compensatory tariffs to protect local industry from unfair competition from China.
The EU’s scope to tighten trade policy is constrained by a high raw material vulnerability. European industry depends on Chinese supplies for almost 90% of its rare‑earth metals. For that reason, Brussels officials are seeking to preserve market access to China and to avoid a full‑scale escalation of a trade war.
