Germany plans to push the EU to broaden restrictions on Chinese imports, seeking quotas across industrial sectors as Berlin adopts a tougher position on trade with Beijing.
Chemicals and mechanical engineering are among the sectors under consideration, with pharmaceuticals possibly added, according to people familiar with the discussions who spoke to Bloomberg.
Berlin wants the European Commission to produce proposals before the end of the year.
The measures would build on a planned ceiling of 350,000 Chinese hybrid vehicles entering the EU.
Germany considers that agreement an opening move in a wider response to trade imbalances.
Safeguards Beyond Cars
Berlin intends to pursue safeguard measures, which allow the EU to limit imports in sectors experiencing a sharp increase in incoming goods.
The German chancellery did not immediately respond to a request for comment.
Shares of European chemical producers rose after the report. Lanxess gained up to 5.4%, while Arkema and BASF rose up to 2.8% and 2.5%, respectively.
EU leaders gathering in Brussels on Thursday will consider how to address a trade deficit with China that reached a record $34.8 billion in September.
Their discussions will extend beyond vehicles to the pressure subsidized, inexpensive Chinese products exert on European manufacturers.
Berlin Hardens Its Position
The push marks a significant shift for Germany, whose reliance on exports and extensive business links with China have traditionally encouraged caution about trade restrictions.
Chancellor Friedrich Merz has accused Beijing of keeping the yuan’s value down.
Speaking to parliament on Wednesday, he promised a stronger European response to subsidies, excess production capacity, and pricing practices that undermine competition, without naming China directly.
“We will no longer stand idly by while other countries harm our economy through high subsidies, artificially devalued currencies, overcapacity and aggressive pricing,” Merz said.
German officials welcomed the hybrid vehicle agreement but said broader action was needed.
The quota was part of a 16-point accord Beijing and Brussels reached last week, covering areas including investment, export controls and intellectual property.
EU economics chief Valdis Dombrovskis also signaled that the vehicle deal would be followed by work on other industries.
“It’s clear that those economic and trade imbalances are not limited to automotive,” he said in Bangkok on Tuesday.
Chinese exports increased 36% year on year last month, according to the country’s customs administration.
Its trade surplus reached $938 billion in the first nine months, almost 8% above the corresponding period last year.
Franco-German Bargaining
Merz and French President Emmanuel Macron want EU leaders to authorize the Commission to develop tougher trade proposals.
The two are also expected to discuss support for Europe’s carmakers alongside the Brussels summit.
A potential compromise would involve France moving toward Germany’s position on phasing out combustion engines, while Berlin softens its objections to requirements that favor European purchases, according to officials.
One official said there was a “good chance” of announcing an agreement during the summit.
Noah Barkin, a senior adviser at Rhodium Group, attributed Berlin’s change to mounting concern among German manufacturers, particularly carmakers, and growing European support for stronger measures.
He said the prospect of Chinese retaliation remains a concern.
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