The European Commission plans to propose a “geo-economic deterrence pact” designed to limit China’s ability to put pressure on the European Union.
This is stated in a draft of the Commission’s work programme for 2027, published by Rapporteur.
The initiative comes amid efforts by the EU, Canada, Japan and other allies to reduce dependence on Beijing, which dominates the supply of critical minerals and strategic goods. In addition, Brussels wants to reduce China’s record trade surplus, which is deepening the downturn in European industry, particularly in the automotive and chemical sectors. The document stresses that, to secure peace, Europe must demonstrate strength, deter threats and expand its influence.
The idea of creating a geo-economic pact involving Japan, Canada and South Korea was put forward in March by the European Parliament’s liberal group Renew Europe. It envisages a mutual defensive response similar to NATO principles: if aggressive tariffs are imposed against one of the agreement’s participants, the other partner countries take joint action in response.
The document also notes that the European Commission is working on a “diversification instrument” to speed up the reduction of economic risks and cut strategic dependence. It is planned to be presented ahead of the EU summit in December. At the same time, the work programme currently does not mention the proposal by France and Germany to immediately close the EU market to China in the event of attempted blackmail, although European Commission President Ursula von der Leyen previously welcomed the initiative and announced that it would be considered.
- It was previously reported that China and the EU reached an agreement that could cut Chinese exports of hybrid cars by more than half. The agreement is intended to curb exports of hybrids and plug-in hybrids from China to the EU, and to reduce imports by several million vehicles over four years.