French finance minister Eric Lombard has urged the European Union to broaden and strengthen tariff measures against Chinese imports, warning that China's production dominance across key sectors could severely damage Europe's industrial base.
France pushes EU to act against China’s industrial overcapacity
“In the world we are in today, we must protect our industry,” Lombard said at the Aix-en-Provence Economic Conference in France, adding, “We must do it across all industrial segments, or China’s strategy of building over 50 percent of global production capacity in every sector will kill our industry.” Lombard emphasized that, while Europe has already introduced trade defenses in sectors such as steel and automobiles, the existing frameworks are insufficient to counter China’s long-term economic strategy.
Europe’s trade defense measures under strain
In 2024, the European Union imposed antidumping duties of up to 45 percent on Chinese electric vehicles in response to Beijing's state subsidies and aggressive export practices. However, according to Lombard, the rules need to be updated to allow broader and faster responses to such threats across various industries.
US-China trade shift impacts Europe
French industry minister Marc Ferracci, speaking at the same event, highlighted a concerning new trend: Chinese exports originally intended for the US are now being redirected toward Europe due to US trade restrictions. “China has built overcapacities in a wide array of industries, and that makes it quite dangerous for our industries,” Ferracci said. He warned that unchecked imports could undercut local manufacturers and distort market dynamics in Europe.