European Union leaders convened in Brussels on Thursday for a packed summit to debate how best to curb surging exports from China blamed by industry groups for factory closures, how to cope with high energy prices, and how to bridge wide differences over the future EU budget.
The leaders from the EU's 27 members met less than a week after the European Commission secured an agreement with Beijing to limit imports of hybrid cars from China. It is a first step in what the EU hopes will be a broader plan to rein in the bloc's goods trade deficit with China that hit 360 billion euros ($400.4 billion) in 2025 and is on course to surpass that level this year.
Draft conclusions from the summit indicate leaders will request the Commission to continue its dialogue with Beijing, while also making full use of EU trade defence measures and adding new trade instruments to protect the bloc further.
Franco-German proposals released last week are likely to be the focus of discussions. The EU's two largest economies said there was an urgent need for measures to deal with imports of chemicals and PET — the plastic widely used in packaging — and called for measures to retaliate quickly against countries that harm the bloc. The paper marks a sharp turn for Germany, which only two years ago was the most vocal critic of EU anti-subsidy tariffs on Chinese electric vehicles.
Several EU countries have also put high energy prices on the agenda, which the draft conclusions call an issue of "critical importance." The conclusions point to proposals such as a one-year delay to the EU's methane emissions rules for oil and gas imports.
EU leaders will also discuss the bloc's next seven-year budget, which requires unanimous approval. The 2028-2034 budget is no different, with a special summit set for late November to try to reach agreement.
One of Friday's main topics will be the challenges facing Ukraine, with President Volodymyr Zelenskiy due to attend. Leaders are likely to discuss Ukraine's funding needs for 2027. The draft conclusions indicate leaders will also express regret over the US decision to temporarily lift sanctions on Russian diesel.