EU-China trade: Berlin wants Europe's trade policy to be more resilient
Germany's federal government is counting on diversification and a stronger European toolkit. No concrete new trade measures against China have been decided yet, however.
In EU-China trade, Germany is demanding a more resilient European trade policy. The formula sounds clear-cut: Germany wants to make European trade policy towards China more resilient. On closer inspection, the situation is less clear. At the beginning of October, the federal government did argue in favour of further developing the European Union's trade policy toolbox in view of global imbalances. But it has not decided on any concrete new measure against China.
A tougher line – but no decision yet
At a government press conference, Berlin pointed to ongoing consultations on the future direction of European trade policy. According to its own statements, the federal government wants to work for a rules-based approach that also takes account of the interests of free trade partners. At the same time, diversification and so-called de-risking are to be driven forward.
De-risking means reducing critical economic dependencies without completely severing trade relations. It concerns, for instance, supply chains, strategic raw materials, technologies and access to markets. The term is therefore narrower than economic decoupling, but broader than classic tariff policy.
The claim that Berlin has already committed itself to a new hardline trade policy towards China therefore falls short. The German government first expects concrete proposals from the European Commission. Only afterwards will it define its position on individual instruments.
The EU is running on two tracks at once
The European Commission describes China at the same time as a cooperation partner, an economic competitor and a systemic rival. It points to structural imbalances, state support for parts of Chinese industry, overcapacity and difficulties for European companies in gaining access to the Chinese market.
The figures underline why the debate has sharpened: the EU's goods trade deficit with China stood at 103 billion euros in the second quarter of 2026, according to Eurostat. A deficit alone, however, proves neither unfair competition nor the effectiveness of specific countermeasures. Above all, it shows how great the economic weight of the relationship is.
At the same time, the EU keeps the dialogue open. On 8 and 9 October, EU Trade Commissioner Maroš Šefčovič and China's Trade Minister Wang Wentao met in Beijing for trade and investment consultations. Both sides declared that they wanted to address differences within the framework of World Trade Organization rules and to make economic relations more stable and more balanced. A further ministerial meeting was agreed for March 2027.
That is not a contradiction, but European trade policy on two levels: it seeks channels for talks while at the same time wanting to strengthen its own ability to negotiate and enforce. Whether this will produce new tariffs, protective instruments or other requirements remains open.
Why Switzerland has to look closely
For Switzerland, the discussion is not merely a dispute between Brussels and Beijing. After the EU and the USA, China is its third most important trading partner. In August, Switzerland and China concluded negotiations on optimising their free trade agreement. Once the legal clean-up and the domestic approvals are complete, 99.8 percent of today's Swiss exports should be able to reach the Chinese market duty-free. This optimised agreement is not yet in force.
EU policy does not automatically apply to Switzerland. Its consequences can nevertheless be considerable indirectly. More than half of Swiss exports go to the EU, and a large part of that flows into European value chains as intermediate inputs. If European rules on supply chains, economic security or imports change, this therefore also affects Swiss suppliers and exporters.
The open decision lies in the details
The actual political decision is still pending. Berlin is calling for a greater European capacity to act, but has neither decided on a new tariff policy nor announced a break with China. The EU, for its part, is trying to remain both open and less vulnerable.
What will be decisive is which concrete instruments the Commission puts forward, how precisely they are designed and whether they actually create fair conditions of competition. For Switzerland, the challenge remains the same: to preserve economic openness without overlooking risks in closely interwoven supply chains.
Sources
- German federal government: government press conference of 9 October 2026
- European Commission: EU trade relations with China
- Eurostat: development of EU goods trade with China
- European Commission: EU-China trade and investment consultations
- FDFA: optimisation of the Switzerland–China free trade agreement
- SECO: Switzerland–EU trade and value chains
