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EU Divisions Deepen as Germany Spars with China Hawkish EU States
A growing rift within the European Union has come to the fore as Germany is said to be resisting demands from several member states for a tougher stance on China over trade imbalances and industrial overcapacity. The divergence reflects broader fissures over how aggressively Europe should confront China while maintaining vital economic ties.
EU officials and diplomats confirm that Berlin remains committed to strengthening trade and industrial ties with Beijing, despite a growing chorus of calls within the bloc for stricter trade defenses and measures to curb Chinese imports. The German government is said to view its industrial relationships with China as vital to maintaining the continent’s competitive edge, especially in sectors such as automotive manufacturing and electronics.
However, a number of EU member states, including France, the Netherlands, and Lithuania, have long called for a more unified and assertive European stance on trade and security vis-à-vis China. Brussels has also been under pressure to take concrete action to address the bloc’s significant trade imbalance with China.
At the heart of the divisions lies a question about the optimal balance between economic and strategic interests. While the EU relies heavily on China as a major market and source of investment, growing concerns over national security, intellectual property rights, and unfair trade practices in the wake of China’s ‘Phase One’ trade deal with the US have fueled calls for greater economic decoupling.
“This is less about taking sides with Washington and more about recognizing the risks associated with overreliance on China,” said a senior EU official, requesting anonymity. “If we don’t address our trade imbalances and overcapacity issues now, we may find ourselves facing an even more daunting challenge in the future.”
German policymakers are said to be sensitive to the risks of a full-scale trade war with China and are wary of being seen as “simplistic” in their approach to bilateral relations. They argue that China is, nonetheless, an indispensable partner for European businesses and must be engaged in a way that balances economic interests with strategic imperatives.
The ongoing disputes within the bloc are set to dominate the agenda at an EU summit in Brussels later this month. European Commission President Ursula von der Leyen has signaled her intention to press EU member states for consensus on a more coordinated approach to China. With Berlin’s stance remaining ambiguous, European capitals are bracing for a potentially contentious discussion, which could further strain already-strained EU-China relations.