The statement came in reaction to a meeting of top EU officials on Friday to brainstorm on how to counter Chinese overcapacity.

European Commission President Ursula von der Leyen on Friday convened an orientation debate with her 26 commissioners to explore a range of policy tools aimed at addressing the EU’s growing trade imbalance with China, as a surge in Chinese goods ranging from vehicles to solar panels and clothes is undercutting Europe’s industries, leading to factory closures and job losses.  

“The current state of the trade and investment relationship is not sustainable,” reads an European Commission statement following orientation debate. “As economic and security interests become ever more intertwined, both dimensions will require a more robust and coherent response.”

The EU’s goods trade deficit with China widened to €360 billion last year from €312 billion in 2024. It expanded even more sharply in the first quarter of 2026, trade figures show.

While France and other member states have pushed for stronger measures to shield European industry, Germany has long warned against steps that could provoke retaliation from Beijing.

But in a U-turn, Berlin on Friday signaled a greater willingness for the EU to take tougher action against a surge of Chinese imports, marking a shift from its traditionally cautious stance.

“I think there is still a road to have a constructive dialogue with China, but we can’t let Europe be the victim of a predatory strategy that is destroying our industry. New tools, new measures, new political will are needed,”  the EU Commissioner for industrial strategy Stéphane Séjourné told POLITICO on Friday.