The European Commission will propose curbs on imports from China beyond existing safeguards, aiming to address the EU trade deficit and structural imbalance with China.

EU leaders back action with safeguards for industries, with Macron highlighting focus areas on chemicals, plastics, and ferro-alloys.

France and Germany endorse a joint document calling for stronger EU resilience and a rapid-response mechanism to counter countries harming the EU; von der Leyen signaled the Commission will build new tools to swiftly restrict access to the EU single market when warranted.

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The text provides no specific details on the exact nature or scope of the proposed curbs.

Investment safeguards would expand to sectors like batteries, EVs, solar, and critical raw materials to ensure foreign investment creates local value and technology transfer.

Second Strike Instrument is being discussed as a potential tool.

The scope and targeting of the mechanism remain sensitive, with officials avoiding specifics to prevent legal challenges and diplomatic tensions; regulation could face hurdles if seen as China-specific.

Industrial investment safeguards would strengthen mandatory conditions under the Industrial Accelerator Act to ensure investment delivers European industrial value, beyond mere local employment.

A potential compromise includes closer alignment on phasing out internal combustion engine cars and adjusting European-content thresholds for public procurement under Buy European policies.

A toolbox for autonomy includes anti-subsidy/safeguard investigations, the Foreign Subsidies Regulation, and the International Procurement Instrument to counter distortions while preserving single-market competition.