EU may restrict imports of Chinese furniture, machinery and chemical products

After electric and hybrid vehicles, Brussels is looking to narrow the European market's gates to further Chinese products. According to Bloomberg, the European Commission is preparing to restrict imports of chemical products, furniture and machinery, and could present its first proposals as early as the first quarter of 2027. For now, discussions are focused on which products would be affected and whether European manufacturers would be protected through tariffs or import quotas.

According to sources who spoke to the news agency on condition of anonymity, the plans could still change: the Commission is negotiating both with member states and with Beijing, so neither the scope of the goods involved nor the form of the restrictions is final. The direction, however, is clear: Brussels intends to slow Chinese imports in several sectors, as their growth is putting increasing pressure on European companies.

The recently negotiated arrangement on imports of Chinese hybrid cars could serve as a model. EU Trade Commissioner Maroš Šefčovič held talks with Chinese Commerce Minister Wang Wentao in Beijing on October 8 and 9. At the meeting, the two sides reached agreement on sixteen points, covering trade and investment as well as export controls, intellectual property protection and limits on hybrid vehicle exports. Under the agreement, the number of Chinese hybrid cars allowed into the EU would be capped at 350,000 units a year — a ceiling Brussels considers high enough to protect the European market without triggering Chinese retaliation. According to Bloomberg's sources, implementing proposals would be put forward in the coming weeks so that the restriction could take effect in December. The quota would remain in place for four years, rising by six percent annually from the second year onward. One source also said that similar limits could be set for cars from other countries, including Japan and South Korea. Hybrids came into Brussels's crosshairs because Chinese manufacturers responded to tariffs on electric vehicles by increasing exports of hybrids instead. In 2024, the EU introduced countervailing duties of up to 35.3 percent on pure electric vehicles made in China, but hybrids were not covered by this measure, prompting manufacturers to ship growing numbers of models to Europe that fell outside the rules. According to the trade portal Electric Vehicles, Šefčovič told EU officials that the intervention could reduce annual imports of Chinese hybrids from an expected roughly 800,000 in 2026 to about 400,000.

Behind the dispute over the automotive sector lies the increasingly stark imbalance in EU-China trade. According to Eurostat data, the EU exported goods worth €199.6 billion to China in 2025, while importing €559.4 billion worth of goods from there — a gap of €359.8 billion by which Chinese imports exceeded EU exports to China. Among the sectors now under review, machinery carries particular weight in this trade. Imports of machinery and mechanical appliances totaled €106.5 billion, accounting for 19 percent of total Chinese imports and making it the second-largest product category. Organic chemicals ranked third, at €34.1 billion. Commission President Ursula von der Leyen said in early October that European industries had called for action, and that the Commission was preparing to respond with further protective measures.

Such tools can be used to restrict imports when a sudden surge causes, or threatens to cause, serious injury to a given sector, and Brussels is already examining trade data to determine in which areas intervention is warranted. Restrictions could take various forms. A cap could be set on the maximum quantity of a given product allowed into the EU, or a tariff quota could be introduced, under which an additional duty would apply once a certain volume is exceeded. According to the sources, the measures would be designed to comply with World Trade Organization rules, meaning they would formally apply to other countries outside the European Economic Area as well, similar to earlier steel safeguard measures, and their introduction would not require China's consent. Beijing, for its part, has already signaled that it is ready to defend its own economic interests. In early October, China's Ministry of Commerce warned the EU not to expect to gain advantages through pressure and not to underestimate China's determination. According to a summary by Traders Union, Chinese authorities have also recently launched an anti-dumping investigation into imports of p-nitrotoluene, which is used in several industries.

Brussels's room for maneuver is especially constrained by its dependence on critical raw materials. European industry needs these raw materials, and Beijing could respond to trade restrictions by tightening their export. The EU is therefore trying both to protect its own manufacturers and to ensure that its companies can gain easier, more predictable access to China's critical minerals. Šefčovič is set to review with his Chinese counterparts early next year what progress has been made in talks so far and what further steps might follow.

Ugar