EU targets plastics sector as China trade deficit hits €197bn in six months

EU Trade Commissioner Maroš Šefčovič said Brussels is moving toward safeguard measures — a mix of quotas and tariffs — on the plastics sector, naming it the most advanced candidate as the bloc seeks to shield more industries from Chinese overcapacity.

"Currently, what I think is the closest, is the plastic sector," Šefčovič said, speaking in Dublin. He added that the European Commission is also examining the chemical and machinery sectors following a directive from Commission President Ursula von der Leyen to EU leaders last week.

The push comes as the EU's trade deficit with China reached almost €197 billion in the first half of this year. Šefčovič warned the full-year figure could approach or exceed the 2022 record of €397.3 billion at the current pace.

The trade chief said a January videoconference with Chinese counterpart Wang Wentao would assess implementation of an October 9 pact under which China agreed to voluntarily cap hybrid-vehicle exports to the EU at 350,000 units in 2027. That deal also lowers tariffs on European goods including auto parts and footwear, and eases exports of rare earth elements to the EU.

Šefčovič said he hoped to agree with Wang on which sectors to address next, with results targeted for an in-person meeting in Brussels in March 2027.

The Commission is separately preparing new trade tools, expected in early December, to nudge EU companies to diversify their suppliers. Šefčovič said the tools would carry no additional reporting burden on businesses. Brussels is also examining a French-German proposal for a mechanism that would allow the bloc to restrict or close market access within days for countries severely distorting the EU single market.