On Thursday, October 15th, according to sources cited by Bloomberg, the European Union is preparing to introduce a trade deterrent tool. This tool would completely cut off the channels for Chinese goods to enter the vast European market when the actions of competitors like China pose a threat to the EU economy.
The sources revealed that EU leaders meeting in Brussels on Thursday requested the European Commission, responsible for trade affairs, to draw up and submit proposals by the end of the year. One source disclosed that negotiations regarding this matter are expected to commence next year.
The purpose of establishing this tool, as indicated by the sources, is to serve as a secondary measure to deter other countries from launching trade wars against the EU. The European Commission will also submit a tool to facilitate diversification of the supply chain in December for EU leaders to consider before the next meeting.
Previously, Beijing has threatened that if the EU persists in introducing new trade tools or adopts discriminatory restrictions against Chinese companies or products, China will strongly retaliate.