EU Prepares New Trade Weapon Against Chinese Overcapacity

The European Commission is developing a fresh policy tool to counter Chinese overcapacity and strategic dependencies, stepping short of deploying its existing "trade bazooka" against Beijing. Brussels is increasingly concerned about the economic relationship with China but wants to calibrate its response carefully before escalating trade measures.

Byte's take

The EU's reaching for a new wrench instead of its trade bazooka—a sign Brussels wants leverage without all-out war.