Story perspectives

68% EU Companies Stay in China, Trade Grows 300-Fold

6/6/2026

Left

EU Firms Expand

EU Chamber of Commerce survey shows 68 percent of European firms stay in or expand in China, countering EU’s de-risking narrative.
China and the European Union said diplomatic channels remain open to resolve differences.
Mao Ning warned steps would harm China and EU, saying China never seeks a surplus.
China-EU trade rose 300-fold, with $260 billion investment, prompting Mao Ning to urge cooperation.

Right

EU Targets China

The EU is drafting an “overcapacity instrument” modeled on U.S. Section 301 to target Chinese industrial surpluses.
The bloc will cut steel quotas by 47 percent, double out-of-quota duties to 50 percent through 2031, and add melt-and-pour rules.
Chinese analysts say EU’s high energy costs and regulation, not Chinese overcapacity, make trade unsustainable.
EU’s anti-coercion instrument and stockpiling of seventeen minerals reduce China reliance while preserving trade.

History

Historical Context

China’s 11 December 2001 WTO accession forced sweeping legal and regulatory reforms, including the review of over 21,000 standards and the abolition of about 1,400. The United States later invoked WTO dispute rules in 2012 to challenge China’s rare-earth export controls, establishing a precedent that the EU’s new overcapacity instrument now mirrors.

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EU Firms Expand

EU Chamber of Commerce survey shows 68 percent of European firms stay in or expand in China, countering EU’s de-risking narrative.
China and the European Union said diplomatic channels remain open to resolve differences.
Mao Ning warned steps would harm China and EU, saying China never seeks a surplus.
China-EU trade rose 300-fold, with $260 billion investment, prompting Mao Ning to urge cooperation.

1 / 3