EU Prepares Restrictions on Chinese Chemicals, Furniture and Machinery Imports

The European Union is preparing restrictions on imports of chemicals, furniture and machinery from China, Bloomberg reported, citing people familiar with the matter, as Brussels moves to shield domestic manufacturers and narrow a $404 billion trade deficit with Beijing. "Our industries have called for action and we have heard them, and we will respond, including some more safeguards," European Commission President Ursula von der Leyen said earlier this month. The proposed safeguards follow plans to implement a cap on Chinese hybrid vehicles in December to protect the EU's automotive sector, where cheap imports have taken market share and driven companies such as VW to lay off tens of thousands of workers. EU trade chief Maroš Šefčovič is expected to discuss trade with Chinese counterparts early next year. Brussels risks retaliation from Beijing, including export restrictions on critical materials and permanent magnets needed by European factories. The push follows right-wing gains in local elections that have exposed voter anger over policies blamed for hollowing out the continent's industrial base.