Less than two weeks after the European Union and China reached an unexpected agreement aimed at de-escalating trade tensions, both sides have entered a contentious exchange over who made greater concessions. Officials in Brussels and Berlin view the accord as evidence that coordinated EU pressure can elicit concessions from China, prompting preparations for additional trade restrictions. Meanwhile, Beijing has rejected notions of being coerced into further compromises, with state media cautioning Europe against overestimating its leverage.
The initial deal, intended to forestall a full-blown trade conflict, has instead hardened positions on both sides. European leaders point to a joint French-German proposal, which envisions a "kill switch" allowing the EU to swiftly expel Chinese companies from its market, as emblematic of a more assertive approach. Pascal Canfin, a senior member of the European Parliament’s trade committee, noted that the paper marked a significant milestone in EU unity and strategy. He emphasized that negotiations must be supported by credible enforcement mechanisms, underscoring China’s dependence on access to the European market.
German Chancellor Friedrich Merz expressed surprise at the unanimous EU support for the tougher stance, though he affirmed that Germany seeks to avoid a trade war. Merz highlighted progress, pointing to China’s willingness to accept limited car imports into the EU—a development not seen in recent months.
Ahead of last week’s EU summit, multiple diplomatic sources outlined a "two-track" approach combining sustained dialogue with targeted trade actions. However, Chinese officials have pushed back strongly against the notion that Beijing can be pressured into sustained concessions. A statement from China’s commerce ministry warned the EU not to "fantasize" about extracting results through coercion and cautioned against underestimating China’s resolve to protect its interests. Xinhua’s Brussels Tea House newsletter echoed this sentiment, suggesting Beijing’s readiness for compromise should not be mistaken for openness to repeated concessions.
Despite Beijing’s resistance, European Commission President Ursula von der Leyen reaffirmed the EU’s dual strategy of dialogue and firm action during a European Parliament address. She announced plans for further trade restrictions and tools aimed at defending European industries from Chinese competition. The EU has already agreed to cap imports of Chinese hybrid cars at 350,000 annually starting December 1. Additional quotas are expected for exports from South Korea, Japan, Turkey, Britain, and Morocco, with the commission monitoring these flows to prevent quota circumvention.
Von der Leyen also referenced recent steps to remove certain EU companies from Chinese blacklists, citing the example of German supplier Sindhulauser, which had suffered from restricted access to Chinese inputs following its blacklisting. The company’s delisting was part of a reciprocal move earlier this year.
As the EU prepares to send a delegation of trade parliamentarians to China next week, hopes remain that the current fragile agreement may lay the groundwork for more substantive understandings. Bernd Lange, who will lead the delegation, called for concrete progress soon, cautioning that prolonged negotiations without results “make no sense.” The next round of talks is scheduled for January, but the durability of this tentative ceasefire is already subject to uncertainty amid the ongoing rhetoric.