The European Parliament, in a debate on 17 June 2026 ahead of the European Council meeting, revealed a deep divide over EU-China economic relations, with the centre-right EPP and right-wing groups demanding tougher reciprocity measures while the centre-left and liberals warned against a simplistic 'China bad, US good' narrative. Council President-in-Office Marilena Raouna outlined the upcoming summit's agenda covering Ukraine, the Middle East, MFF negotiations, competitiveness, migration, and security. Commissioner Maroš Šefčovič reiterated the Commission's 'derisking, not decoupling' approach to China, stressing reciprocity and a level playing field.
EPP leader Manfred Weber called China's €360 billion trade deficit 'unacceptable', demanding reciprocity in public procurement and European sovereignty over 6G networks. ECR's Nicola Procaccini echoed the call for a decisive response to China's unfair competition and defended the new returns regulation as taking back control of borders. Patriots for Europe's Kinga Gál rejected MFF cuts to CAP and cohesion, opposed rule-of-law conditionality, and criticised Ukraine's accession talks as premature.
On the other side, S&D leader Iratxe García Pérez pushed back against what she called a simplistic 'China bad, US good' narrative and urged the Commission to tax windfall oil profits. Renew's Valérie Hayer urged European independence from both the US and China, focusing on technological sovereignty and competitiveness. Greens/EFA's Terry Reintke blamed fossil fuel dependency for crises and defended the Green Deal as key to sovereignty.
The debate pitted those prioritising protectionism and sovereignty (EPP, ECR, PfE) against those advocating multilateralism and green investment (S&D, Renew, Greens/EFA). No formal decisions were taken; the Council will provide strategic guidance on 18-19 June 2026.
EU producers in sectors exposed to Chinese competition (e.g., steel, solar panels, 6G equipment) would benefit from stronger reciprocity measures and public procurement restrictions, but could face higher input costs if supply chains are disrupted. EU consumers could face higher prices if protectionist measures reduce competition. EU exporters to China risk retaliation and market access restrictions. EU taxpayers may see increased spending on defence and technological sovereignty initiatives, as well as potential revenue from windfall profit taxes on oil companies if the S&D proposal gains traction.