BELGIUM-EU-POLITICS-INSTITUTIONS
The EU is assessing measures to further protect certain industrial sectors, aiming to reduce the pressure of import competition on European manufacturing while maintaining foreign trade.

The European Union is considering extending trade defense measures to more industries as it addresses its trade imbalance with China, with chemicals and industrial machinery potentially becoming the focus of the next round of assessments. The discussions reflect Europe's desire to preserve international trade while protecting local industries from the impact of a rapid increase in imports.

According to Central News Agency, the European Commission is studying ways to protect industries including chemicals and industrial machinery. People familiar with the matter said EU leaders will brief member states on the direction under consideration, but the discussions remain at the policy assessment stage and do not mean a formal decision has been made to impose new restrictions on these products.

The EU recently reached an understanding with China on the volume of hybrid vehicle imports and plans to limit annual sales of Chinese hybrid vehicles in Europe to 350,000 units. The arrangement is seen as a possible model for addressing trade imbalances, but whether it will be extended to other industries remains subject to further negotiations.

China's position as an exporter in the global industrial machinery market has continued to strengthen, the report said. In the chemicals sector, Chinese products have also increased their share of EU chemical imports. Some European industry and government officials have therefore called for an assessment of whether a surge in imports is creating unfair competition or structural pressure on local manufacturers.

However, expanding import quotas or adopting other trade restriction measures could prompt retaliation from China, raise business costs and affect supply chains across Europe and Asia. How the EU balances industrial protection, consumer interests, international trade rules and its economic and trade relationship with China will be a key test for its subsequent policy.

For Taiwanese companies, changes in EU-China trade policy could affect supply chain planning and the competitive environment in the European market. This will be particularly important for multinational industries such as machinery, electronic components and industrial materials.