EU shields industry from Chinese imports, cites overcapacity amid structural stagnation

The European Commission is preparing trade defense measures, including a possible 'kill switch' mechanism, to protect its machinery and chemical sectors from Chinese imports. Brussels frames a record trade deficit with China as evidence of overcapacity driven by state subsidies, but this narrative masks deeper structural stagnation in EU manufacturing. The measures could escalate trade tensions with China while failing to address underlying competitiveness issues.

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