Clear eyed must read: China 🇨🇳 shock 2.0 leads to 🇪🇺 🇩🇪 de-industrialisation. Beyond targeted product specific trade defence and sectoral safeguard measures a new US type section 301 measure becomes necessary, unless China changes course; highly unlikely. cer.eu/publications/archive/…

"In Germany's manufacturing sector, around 520,000 jobs were lost between 2019 and 2025, 400,000 of them solely due to China's aggressive economic policies" - new @iw_koeln figures reported in this Handelsblatt piece help explain Germany's shift on China. handelsblatt.com/politik/deu…

The economic relations between #Europe and #China are like open-heart surgery. Every incision must be made with precision. Every decision must be carefully coordinated. No further political mistakes can be made. My impression is that the participants at the #G7 meeting still have not fully grasped the seriousness of the situation. How can one enter such a meeting without a common line? The fundamental debates should have been settled long ago. That is why the three pillars of a new EU/China strategy can only work together. One without the others will fail. First: Honesty. The European Commission must conduct an honest assessment. The loss of competitiveness in many European industries was not primarily caused by China, but by flawed legislation that received broad support in the European Parliament and the Council during the 2019–2024 legislative period. Europeans made it clear in the 2024 election that they expect a change of course. Second: A genuine level playing field. Europe and China need relations based on true reciprocity. What applies to European companies in China must apply equally and without exceptions to Chinese companies in Europe. Open markets can only be sustainable if the rules are the same for everyone. Third: Legitimate protective measures. China pursues a different economic model from Europe. It is not our role to tell China how to organise its economy. However, Europe has both the right and the duty to protect itself against distortions of competition caused by extensive state support and non-market practices. The same right, of course, also applies to China. These three pillars are inseparably linked. Honesty without reciprocity is weakness. Reciprocity without protection is naivety. Protection without honesty quickly turns into protectionism.

Following intensive talks, we are pleased to announce that the Peace Deal between the United States of America and Islamic Republic of Iran has been REACHED. Both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon. The official signing ceremony will be on Friday, 19 June in Switzerland. We would like to thank the United States of America and the Islamic Republic of Iran for their commitment to finding a diplomatic solution to the conflict. We would also like to extend our sincere appreciation to our brothers in this mediation effort, the great leadership of State of Qatar, for their support in reaching this agreement. I would also especially thank the visionary leadership of Kingdom of Saudi Arabia and Republic of Türkiye for their immense contributions in this regard. With the agreement now in place, mediators will facilitate a series of meetings this week. These pre-implementation discussions will lay the foundation for the technical talks and the official signing ceremony. @realDonaldTrump @JDVance @SecRubio @SteveWitkoff @SEPeaceMissions @drpezeshkian @mb_ghalibaf @araghchi

Chinese overcapacity is treated by some as a domestic problem. That completely misses the point. The EU’s goods deficit with China hit €359.8bn in 2025. The US goods deficit with China was still $202.1bn in 2025. India’s deficit with China reached $99.2bn in 2025. ASEAN runs a goods deficit with China of around $190bn. This is not accidental. It has been one of China’s main geopolitical strategies for decades: subsidise industry, flood foreign markets, destroy competitors and make other economies dependent on Chinese production. Chinese firms receive three to eight times more government support than firms in OECD countries. Cheap imports become supply-chain dependence. Then tariffs become painful because companies, consumers and industries are already locked in. Do not misunderstand this: cheap Chinese imports can be positive for consumers in many sectors. But in strategic industries, Europe cannot depend on foreign overcapacity.

Carney: The post Cold-war world rules-based order is breaking down The only way for medium-sized powers to avoid becoming vassals of either the United States or China is through commercial and strategic integration, as exemplified by the European Union. The EU's internal market already exceeds €4 trillion in annual trade, and in more than 88% of EU countries, the EU itself is their largest trading partner. Europe should continue expanding by welcoming new members while also building stronger partnerships—or even deeper forms of integration—with the United Kingdom, Canada, Latin America, the Indo-Pacific region, and Africa. Only by creating a broad network of aligned economies and strategic interests can Europe maintain its autonomy and influence in an increasingly multipolar world

Applebaum: What binds Russia, China, Iran and North Korea is not religion or ideology. China is communist, Russia nationalist, Iran theocratic. What binds them is fear of liberal language: rights, rule of law, separation of powers and independent courts. 1/

We have signed a Digital Trade Agreement with the Republic of Korea 🇪🇺🇰🇷 It will make it easier for businesses to work across borders, with rules on things like electronic signatures, electronic contracts and e-invoicing. Get the facts🔗 link.europa.eu/w4B6h4 #EUTrade

The European Commission is preparing new measures to prop up the EU’s chemicals industry as a wave of cheap Chinese imports pushes the sector to the brink. politico.eu/article/europes-…

Pope Leo XIV in Madrid: “I encourage you to nurture the process of European Union, which is not merely a counterweight to other powers, but a gift to humanity.” Wonderful. A powerful reminder of how beautiful and hopeful the European project truly is. 🇪🇺🇪🇸

The idea that China’s industrial success has been built on free-market competition is false. In 2024 alone, China accounted for 52% of the $108bn in industrial subsidies tracked by the OECD, and almost 60% of Chinese firms’ market-share gains since 2005 were driven by subsidies. Europe failed to build enough sovereign military production, underinvested in energy sovereignty, was too slow to support its own tech industries, and reacted too late to China’s state-backed industrial expansion. A strongly pro-business economy is essential for growth. But sovereignty does not happen by free market alone. Europe needs much more strategic ambition from the state.

Feels like something is moving in Germany. Conservative leader in EPP Manfred Weber “Either we fight back, or China will cripple parts of our industry. The EU must now use its trade policy instruments decisively and without hesitation"

🇱🇧 President Aoun: A full ceasefire between Israel and Hezbollah, the withdrawal of Israeli troops from Lebanon, Hizbollah’s disarmament and the end of Tehran interference will ultimately allow a normalisation of Lebanese-Israeli relations.

“Better to be a member of the EU than a U.S. state” — Finland’s president made Canada an unexpected proposal Alexander Stubb suggested expanding the EU to around 40 countries. He said Europe needs to become stronger on the global stage and more actively attract new partners. Among possible candidates, Stubb named the United Kingdom, Canada, Turkey, Norway, and Iceland. According to him, now is the right moment due to the war in Ukraine and shifts in U.S. policy.

BREAKING: EU trade chief Maros Sefcovic says that "diversification requires a dedicated instrument" First public acknowledgement the Commission is building a new tool

Honoured to have been nominated for the position of Ambassador of the European Union 🇪🇺 to China 🇨🇳 - Looking forward to this fascinating new role. eeas.europa.eu/eeas/eeas-hig…

Foreign interference?

According to the OECD, Chinese firms received 3–8x more subsidies than Western competitors between 2005 and 2024, and around 60% of China’s global market-share gains since 2005 were driven by state support. The United States does the same. Its semiconductor strategy includes $52.7bn in CHIPS Act funding, plus major tax incentives. Its defence, aerospace, AI and semiconductor ecosystems were built around decades of public procurement, DARPA, NASA, defence R&D, tax credits and federal industrial strategy. Brussels must directly support European champions and focus on developing Europe’s strategic sectors: energy, defence, AI, semiconductors, batteries, aerospace, grids, robotics and advanced manufacturing. Strategic public support creates global champions.

Spannende Entwicklung: Seit über 10 Jahren verfolge ich die deutsche China-Politik, nun deutet sich zum ersten Mal eine Bereitschaft zu deutlich härteren handelspolitischen Maßnahmen an. Grund: Wachsende Sorge, dass unsere industrielle Basis unfairem Wettbewerb zum Opfer fällt.

Europe Braces for China Shock 2.0 gmfus.org/news/europe-braces…

Ursula von der Leyen will ask top officials to back a major crackdown on subsidized Chinese imports. The move will set the stage for a clash with EU countries that still want to protect their ties with Beijing. politico.eu/article/von-der-…