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France and Germany seek EU kill switch to bar China over distortions

The proposal would grant the European Commission rapid powers to cut off EU market access when third countries trigger severe distortions.

Reported · Written up by our desk · Trade & Tariffs

France and Germany have called for the EU to create a new trade tool that would allow Brussels to rapidly cut off access to the EU market when third countries cause severe distortions, a move framed as an “immediate cut off” capability, according to a joint paper and letter seen by the South China Morning Post.

The proposed mechanism would act like a kill switch and would expand the European Commission’s powers to respond quickly to systemic distortions, potentially immediately.

The strategy was outlined in a joint paper by the bloc’s two largest members and a letter to European Commission President Ursula von der Leyen, ahead of a crucial period of EU-China negotiations, the outlet reported.

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