EU too slow to act as China rewrites global trade rules, trade chief Sefcovic warns

South China Morning Post

by Finbarr Bermingham

February 24, 2026

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EU too slow to act as China rewrites global trade rules, trade chief Sefcovic warns

The European Union’s trade chief, Maros Sefcovic, has issued a stark warning about the EU’s sluggish response to China’s growing dominance in global trade. Speaking in the European Parliament, Sefcovic criticized Beijing’s “unsustainable” trade surplus and called for urgent reforms to address overcapacity, unfair trade practices, and state subsidies that give Chinese exporters an edge. He highlighted the EU’s $424 billion trade deficit with China as a pressing concern, noting that this imbalance is not sustainable in the long term. Sefcovic also emphasized the need for faster trade probes and more flexible rules to counteract China’s aggressive export strategy. The commissioner pointed out that the EU currently has over 200 ongoing trade defense investigations, but the process is slow and often misses critical opportunities to act. On average, a trade probe takes over a year and relies on official complaints from companies, which can delay effective responses. Sefcovic stressed that this inefficiency leaves the EU vulnerable to China’s rapid export growth and market manipulation. He also confirmed that the EU is closely monitoring the rise of Chinese plug-in hybrid vehicles in Europe, signaling potential competition in the automotive sector. The situation is compounded by China’s extensive use of state subsidies, which account for 4% of its GDP. According to an IMF study cited by Sefcovic, these subsidies distort market dynamics and give Chinese companies a significant advantage. He called for reforms to global trade rules through the World Trade Organization (WTO) to address overcapacity and unfair practices. Sefcovic’s remarks come as the EU grapples with challenges such as overproduction in key industries and growing pressure from Chinese exports. This issue matters deeply to readers interested in global trade dynamics, as it highlights a critical

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Originally published on South China Morning Post on 2/24/2026