The European People's Party (EPP), the largest and most influential political family in the European Parliament, is drafting a position paper that calls for a recalibration of the EU's economic relationship with China—one that stops short of open confrontation or full decoupling.
According to early drafts seen by Euronews, senior EPP lawmakers argue for a general rebalancing of economic ties by making fuller use of the bloc's existing leverage tools, while keeping the door open for dialogue. The paper is expected to be finalised in mid-October, just after the next European Council summit.
A pragmatic approach to trade tensions
The EPP's stance reflects a broader concern in Brussels about the widening trade deficit with Beijing, which EU officials attribute to Chinese industrial overcapacity and state subsidies that undercut European competitors. The European Commission has set October as a deadline for securing concessions from China, after which it is prepared to impose harsher measures, according to EU Trade Chief Maroš Šefčovič.
The EPP paper focuses on four main areas: rebalancing trade and investment, export controls, intellectual property rights, and reform of the World Trade Organisation. An early version argues for a balanced approach—promoting dialogue while defending Europe's economic interests more forcefully, notably by using trade defence instruments more decisively and developing new tools to counter unfair competition.
At the same time, EPP lawmakers insist that any trade measures should be proportionate and temporary, designed to strengthen the EU's bargaining power rather than lock in permanent protectionism. This pragmatic line is likely to appeal to member states wary of a full-blown trade war with China, which could hurt European exporters and disrupt global supply chains.
The paper also calls for diversifying supply chains and reducing dependency on critical raw materials, partly through the ratification and expansion of free trade agreements with partners such as Mercosur, India, Indonesia, and Australia. This is seen as a way to reduce China's economic leverage over the bloc.
In addition, the EPP wants tighter customs enforcement and closer oversight of e-commerce platforms, as the Commission plans a major reform to close enforcement gaps that allow illegal goods into the EU market. This aligns with recent efforts to tighten EU investment rules amid rising trade tensions.
The EPP's influence is considerable: it commands the largest number of MEPs and holds 14 of the 27 European Commission portfolios. Its position will therefore carry weight in shaping the EU's final stance on China, which is expected to be debated at the upcoming European Council summit.
Observers note that the EPP's approach is a delicate balancing act—assertive enough to address European concerns about unfair competition, but measured enough to avoid a rupture with Beijing. This is particularly relevant as China's exports surge and as the EU grapples with how to respond to Beijing's stance on Taiwan.
The paper is expected to be finalised in mid-October, and its recommendations could influence the European Commission's next steps. Whether the EU ultimately opts for a more confrontational or conciliatory path remains to be seen, but the EPP's push for a balanced strategy is a clear signal that the bloc's largest political family prefers engagement over escalation.
