As debates intensify within the European Union over how to respond to growing economic competition from China, a number of member states have begun advocating tougher trade measures against Chinese imports. A joint policy paper reportedly circulated by Spain, France, Italy, the Netherlands, and Lithuania calls for stronger trade defenses, including higher tariffs and more assertive action against what they characterize as unfair Chinese trade practices. Some European leaders have even suggested adopting measures similar to the United States’ Section 301 tariffs, raising concerns that Europe could be moving toward a broader economic confrontation with China.

Yet despite growing political pressure, launching a trade war with China would be a costly mistake for Europe. Such a strategy would neither solve the EU’s structural economic challenges nor strengthen its industrial competitiveness. Instead, it would risk undermining one of the world’s most important economic partnerships, disrupting supply chains, increasing costs for businesses and consumers, and weakening Europe’s own long-term growth prospects. Rather than embracing protectionism, Europe should focus on dialogue, cooperation, and internal reforms that address the root causes of its economic difficulties.

A central argument behind calls for tougher trade measures is the claim that Europe faces a new “China shock.” Advocates of this view point to the EU’s substantial trade deficit with China, estimated at hundreds of billions of euros annually, as evidence that Chinese exports are overwhelming European markets and threatening local industries.

However, trade deficits alone do not provide a complete picture of economic relationships. If a trade surplus automatically indicated unfair competition or industrial overcapacity, many advanced economies—including several European nations themselves—would face similar accusations. European companies export large quantities of aircraft, pharmaceuticals, luxury goods, machinery, and automobiles around the world while maintaining significant trade surpluses with numerous trading partners.

The reality is far more complex than simplistic deficit statistics suggest. Much of the growth in Chinese exports to Europe has occurred in sectors that align closely with Europe’s own economic and environmental priorities. Electric vehicles, solar panels, batteries, and other clean-energy technologies have become increasingly important as Europe pursues ambitious climate goals and seeks to accelerate its green transition.

Demand for these products has been driven not only by Chinese manufacturing capacity but also by European policy choices and consumer preferences. Chinese companies have become major suppliers because they offer competitive products in industries where Europe requires........

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