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EU ‘open’ to curbs on imports of Chinese chemicals and machinery, after hybrid-car deal

15 October 2026 at 18:59

The EU is preparing to curb Chinese imports of chemicals and industrial machinery, following a successful deal with Beijing that capped hybrid car exports to the bloc.

The European Commission “showed openness” to proposing safeguards, referring to an emergency brake on imports that can cover entire sectors, an EU diplomat told EUobserver on Thursday (15 October).

And there was “broad support” for the idea among member states for the commission to proceed, the diplomat said.

Last week, trade commissioner Maroš Šefčovič agreed with Beijing to cap imports of Chinese hybrid cars at 350,000 next year, which was less than half the amount expected this year.

He called the deal a “blueprint” for other sectors, a view which was publicly echoed by EU Commission president Ursula von der Leyen, also on Thursday. 

Under World Trade Organization (WTO) and EU rules, anti-dumping and anti-subsidy cases require Brussels to prove that Chinese firms sell at unfairly low prices or receive subsidies.

Safeguards do not need evidence under WTO rules, which allows them to be used as an emergency measure.

And the commission only has to show that a surge in imports is seriously harming European producers. 

“We like the idea, chemicals, machinery where there’s still a lot of Chinese overproduction needs to be managed,” said another EU diplomat.

The instrument had its limits: Safeguards have to apply to all countries, not just China, and can last no more than eight years.

The EU rarely uses WTO safeguards, but did so on steel, also aimed at China, which expired in June, after reaching the eight-year limit, and which have since been replaced by a separate EU steel regime.

And the Centre for European Reform, a prominent think-tank in Brussels, previously suggested exempting the EU’s 76 free-trade partners from safeguards so that the measures fell mainly on China.

It was a legal moot point in the WTO if that was OK, but the EU has done something similar before. 

Norway, Iceland, Liechtenstein, and 10 other countries were left out of the steel safeguard, but using this tool to address Chinese imports was still seen as a temporary solution.

Before the end of the year, the EU commission aims to present diversification tools to reduce reliance on Chinese goods, as well as a mechanism to compensate companies hit by Chinese countermeasures.

And the package would include an instrument to shut Chinese companies out of the EU market if need be, in a measure first proposed in a Franco-German paper last week.

Oil Shipping Costs Spike, Lifting Prices from Pump to Grocery

15 October 2026 at 18:27
When the oil supertanker Esteem Explorer sails from the United States to Japan in late November, loaded with about 2 million barrels of crude, the journey will cost $81 million. The same journey would have cost $9.1 million last year, on average.

Even Blue-Collar Workers Have Turned Against Trump's Unpopular Tariffs

15 October 2026 at 17:35
President Donald Trump in the Oval Office | Samuel Corum - Pool via CNP/picture alliance / Consolidated News Photos/Newscom

President Donald Trump promised that his tariffs would usher in a "golden age" by prioritizing the interests of American workers.

Those workers, however, are now turning against Trump's tariffs.

Support for the Trump administration's tariff policies has fallen by 25 percentage points among blue-collar workers over the past year, according to new polling data from Echelon Insights and the Economic Innovation Group (EIG).

A poll conducted by the two groups in August 2025 found that blue-collar workers supported the tariffs by a narrow margin. Now, that same segment of the population has turned decisively against Trump's tariffs: 58 percent oppose them, compared to just 36 percent who support them.

Source: Economic Innovation Group / Echelon Insights (https://eig.org/wp-content/uploads/2026/10/EIG-State-of-the-American-Worker-2026.pdf)

Overall, support for the tariffs has declined from about 43 percent last year to only 34 percent. Opposition to the tariffs has grown from 50 percent to 59 percent. Elsewhere in the same survey, 68 percent of respondents said the tariffs have made the cost of living higher.

It's not hard to figure out why people have turned against the tariffs: They have contributed to rising prices across the economy.

The annualized inflation rate ticked upward to 3.7 percent in September, according to new data from the Bureau of Labor Statistics (BLS). More BLS data released Thursday morning shows that the producer price index, which often operates as a precursor to inflation, is up 6.3 percent over the past year.

America's war with Iran has been a major factor in rising inflation, but the tariffs have played a significant role as well. In a study released last week, the New York Federal Reserve concluded that consumer prices would have declined slightly over the past year if not for the economic effects of the tariffs.

The tariffs have become so unpopular that not even partisanship can save them. "Among GOP-voting workers, only 3 percent select tariffs as their top priority," note Jordan McGillis and John Lettieri, policy experts from the EIG, in their write-up of the poll.

Other parts of Trump's economic agenda are not faring much better. The Trump administration has bought or seized shares of more than 30 private businesses over the past two years—ranging from major firms such as U.S. Steel to small mining companies with few customers. "The federal government's state corporatism is unprecedented," reports the Cato Institute in a new analysis of those deals.

Large majorities of workers across both major parties and all generations said they opposed the federal government taking equity stakes in American companies in the Echelon/EIG poll.

Source: Economic Innovation Group / Echelon Insights (https://eig.org/wp-content/uploads/2026/10/EIG-State-of-the-American-Worker-2026.pdf)

In short: This economic populism sure isn't very popular.

All of this is likely to be a major factor in next month's midterm elections. Regardless of how that shakes out, however, there are lessons to be drawn from this poll for both sides of the political divide.

For conservatives, these polling data should end the tariff experiment. It has proven economically damaging, and it is no longer a political winner (if it ever was).

Remember, the idea to hike tariffs and start trade wars with all of America's biggest trading partners was not some grand plan backed by careful study and thoughtful analysis. It sprung, half-baked, from the head of one man. Yes, there have been various attempts to support, in a post hoc way, Trump's desire for tariffs. All of that can, and should, be easily discarded. There is no reason to allow a lame duck president to continue to set such a politically and economically destructive path for the country.

Undoing the tariffs might also put a meaningful dent in rising prices. That should be a no-brainer after the midterms, no matter which party controls Congress.

On the left, this poll should be a reminder that Americans do not look favorably on the mixing of government and business. Democrats should promise to unwind the "equity stakes" that the federal government has taken under Trump's watch. Heading toward the 2028 presidential cycle, Democrats might want to borrow some old Republican talking points about how government shouldn't be picking winners and losers—they may find that message is still quite popular.

Yes, it's probably right to be skeptical that those things will happen. Trump's efforts to centralize economic power in the executive branch are likely to outlive his presidency—that's how these things always seem to go.

But there is a glimmer of hope here. Americans are soundly rejecting the Trump administration's big government policies.

The post Even Blue-Collar Workers Have Turned Against Trump's Unpopular Tariffs appeared first on Reason Magazine.

EU leaders uniting on tougher China trade defence, but clash over carbon pricing rules

15 October 2026 at 15:02

Europe’s trade deficit with China reached a record $34.8bn [€31bn] in September, as EU leaders meet in Brussels on Thursday (15 October) to discuss Europe’s competitiveness agenda and what they call “macroeconomic imbalances” — a euphemism to avoid mentioning China by name.

EU heads of state and government are expected to give a mandate to the EU Commission to propose a set of trade defence measures and tools to reduce the EU’s reliance on Chinese industry, based on a new Franco-German blueprint, as a united front spreads across the bloc. 

There was a move towards a “surprising unitary position” on Beijing among member states, said an EU diplomat, ahead of a two-day summit in Brussels which began on Thursday (15 October).

A joint letter and policy paper submitted by French president Emmanuel Macron and German chancellor Friedrich Merz to commission president Ursula von der Leyen last week was viewed by many EU diplomats as marking a decisive shift towards a more consolidated EU stance on trade relations with China. 

“For a long time, there were significant differences between these two countries on how to deal with China, how to address the economic situation,” parliament president Roberta Metsola told reporters on Thursday. 

The diplomat added that the commission’s trade diversification package, designed to reduce the bloc’s reliance on Chinese industrial inputs and curb Chinese exports, will be presented by the end of the year and will be based on the Franco-German paper. 

But the commission, for its part, has downplayed the prospect of rapid progress to EU-Chinese trade statistics. “It’s an issue which is not going to be solved in a couple of months,” said one official. 

‘Be ready for escalation’ but do nothing

This article continues, but the full version is available only to EUobserver.com subscribers. Visit account.euobserver.com/membership

Trump Keeps Coming Up With Legally Dubious Tariff Justifications

15 October 2026 at 11:30
Donald Trump | Photo, middle: Geopix/Alamy

When a president starts with a predetermined policy and then goes looking for a statutory pretext to justify it, he is building on shaky ground. President Donald Trump illustrated that point once again in July, when he announced a third round of broad tariffs after his first two attempts ran into legal trouble.

Shortly after taking office in 2025, Trump claimed to have discovered a previously unnoticed delegation of extensive tariff authority in the International Emergency Economic Powers Act (IEEPA), a 1977 law that does not mention import taxes and had never been used to impose them. That claim was rejected by every court that considered it.

Last February, the Supreme Court ruled that IEEPA does not authorize tariffs at all. But Trump had a backup plan: Hours after that decision, he announced another sweeping set of tariffs, this time relying on Section 122 of the Trade Act of 1974.

That provision allows tariffs in response to "fundamental international payments problems" caused by "serious United States balance-of-payments deficits." In May, the U.S. Court of International Trade (CIT) ruled that the new tariffs were illegal because Trump had failed to "identify balance-of-payments deficits within the meaning of Section 122."

Although that decision was stayed pending appeal, Trump's Section 122 tariffs, which were subject to a 150-day statutory limit, expired on July 24. Trump then switched to Plan C, invoking Section 301 of the Trade Act, which authorizes tariffs in response to a foreign "act, policy, or practice" that is "unreasonable or discriminatory" and "burdens or restricts" U.S. commerce.

Trump's Section 301 tariffs supposedly targeted countries that had failed to "impose and effectively enforce a prohibition on the importation of goods produced with forced labor." The alleged offenders included 86 economies that accounted for nearly all U.S. imports.

In separate complaints, the Liberty Justice Center (LJC) and the law firm Akin Gump, which had played leading roles in challenging Trump's prior tariffs, immediately asked the CIT to block the new import taxes. By and large, they noted, the government had failed to explain how the targeted countries had fallen short, how their alleged failures burdened U.S. commerce, or why the new tariffs could be expected to ameliorate the problem they were supposed to address.

The LJC argued that the forced-labor issue was "simply a pretext" for reinstating Trump's "invalidated global tariff regime." It added that Trump's reading of Section 301, like his interpretation of IEEPA, would violate the "major questions" doctrine, which requires clear congressional authorization for policies of "vast economic and political significance."

This was Trump's "third attempt" to "impose essentially the same set of sweeping global tariffs," Akin Gump's lawyers wrote. "The third time's not the charm."

The post Trump Keeps Coming Up With Legally Dubious Tariff Justifications appeared first on Reason Magazine.

Closer EU trade ties greater prize for UK than making separate deals, minister says

14 October 2026 at 14:58

Exclusive: Douglas Alexander, on trade delegation to India, talks up economic benefits of joint trading arrangements with Europe

Britain will benefit from much closer trading relations with the EU even if that means giving up its ability to negotiate free trade agreements, the Scotland secretary has said.

Douglas Alexander helped negotiate deals with India and the US when he was a trade minister under Keir Starmer.

Continue reading...

© Photograph: X/Douglas Alexander

© Photograph: X/Douglas Alexander

© Photograph: X/Douglas Alexander

Excluding UK from ‘Made in Europe’ law will hurt entire EU car industry, Mercedes boss warns

Ola Källenius says it will ‘weaken the industry on both sides’ ahead of act intended to counter non-EU competition

Locking the UK out of the EU’s flagship industrial “Made in Europe” legislation would amount to a “deliberate choice” by EU leaders to “hurt” the car industry across the bloc, the head of Mercedes-Benz has said.

Speaking in his capacity as president of the European Automobile Manufacturers’ Association (ACEA), Ola Källenius said such a move would “weaken the industry on both sides”.

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© Photograph: Christoph Steitz/Reuters

© Photograph: Christoph Steitz/Reuters

© Photograph: Christoph Steitz/Reuters

EU and Turkey explore closer trade ties to reduce dependence on China

14 October 2026 at 12:09

Belgium’s foreign minister has called on the EU to deepen its economic, trade, and defence ties with Turkey, amid concerns from Ankara that it risks being shut out of the bloc’s new rules on industrial supply chains and multi-billion euro defence procurement scheme. 

Speaking at a Turkey-EU business forum in Brussels on Tuesday (13 October), Belgian foreign minister Maxime Pévot said that European manufacturers were increasingly looking for reliable partners closer to home as they seek to reduce their reliance on Chinese inputs. 

“We should make values of its proximity, particularly in sectors where Europe needs to reduce strategic dependencies,” he added. 

“Our economic relationship should no longer be limited to buying and selling goods. We should also be developing, producing, and investing together,” he said. 

For his part, following talks with Ankara’s trade minister, Ömer Bolat, EU trade commissioner Maroš Šefčovič told reporters that the two sides had agreed on reforms to Turkey’s import control system to make the system easier for EU exporters to use and a mutual recognition pact on trusted traders. 

This article continues, but the full version is available only to EUobserver.com subscribers. Visit account.euobserver.com/membership

China and EU Seek Greater Stability in Trade Ties

14 October 2026 at 10:51

China is seeks to maintain dialogue with the European Union to bring “greater stability” to their economic and trade relations, Vice Premier He Lifeng said during a meeting with French President Emmanuel Macron’s diplomatic adviser in Beijing.


He Lifeng conveyed the message to Emmanuel Bonne during a meeting held Tuesday at the Great Hall of the People on Wednesday. Both discussed bilateral cooperation and trade relations between Beijing and Brussels, Xinhua reported.

The official also highlighted the possibilities of expanding economic cooperation with France and expressed Beijing’s willingness to implement the consensus reached by the presidents of both countries.

RELATED: Trade escalation: Trump imposes 100% tariff on imports from China U.S.

Bonne, for his part, conveyed Paris’s readiness to continue promoting positive results in trade and investment consultations between China and the EU.

The French adviser had already defended last Friday, during a meeting with Chinese Foreign Minister Wang Yi, that Europe does not want a trade war with China nor seeks economic decoupling, according to a statement from the Chinese Foreign Ministry.

“Europe’s development needs China,” Bonne said at that meeting, according to the version released by the Chinese Foreign Ministry.

EU-CN trade needs real rebalancing. With Minister Wang Wentao we've reached a shared understanding to:⁰🔹halve HEV, PHEV exports⁰🔹improve access to China's market⁰🔹further ease rare earths export licensing.
A first step. I welcome the genuine engagement. We reconvene by Jan. pic.twitter.com/SiKiZYLC8N

— Maroš Šefčovič🇪🇺 (@MarosSefcovic) October 9, 2026

The contacts come after the agreement reached last week between Beijing and Brussels, which contemplates limiting Chinese exports of hybrid vehicles to the EU bloc, facilitating European access to rare earths and reducing tariffs on certain European products.

How Europe’s most wanted cocaine trafficker turned Sierra Leone into the world’s first true narco state

14 October 2026 at 07:00

Drawing on dozens of interviews with intelligence and police officers across two continents, a Guardian investigation reveals the murderous cost of our insatiable appetite for cocaine

Read more: Latin American organised crime ‘may operate in 16 European countries’
Explainer:
What is state capture and why does it matter?

As abductions go, few have been more brazen. Alan Jalloh was with two friends outside Goodies supermarket, frantic as usual with late afternoon shoppers. Rush hour in downtown Freetown, Sierra Leone’s capital, was under way with familiar gusto.

A black Toyota Rav4 forced its way through the Peninsula highway traffic. Witnesses describe burly white men leaping out, yanking on balaclavas. Jalloh, 40, seemed to freeze. As did his two friends, one a famous Freetown footballer. All three were dragged into the waiting SUV. None of them have been seen since.

Continue reading...

© Composite: Guardian Design

© Composite: Guardian Design

© Composite: Guardian Design

BRICS Pay, non è ancora giunto il momento?

By: A A
13 October 2026 at 10:30

BRICS Pay non è una valuta né una rete di regolamento: è interoperabilità. E a Nuova Delhi i leader si sono limitati a “prenderne atto”.

Segue nostro Telegram.

Cosa è e cosa non è

Alla vigilia del diciottesimo vertice BRICS, ospitato al Bharat Mandapam di Nuova Delhi il 12 e 13 settembre 2026, una parte della stampa specializzata dava per imminente il debutto di BRICS Pay. Le guide al vertice indicavano proprio la capitale indiana come sede del pieno dispiegamento del sistema, con la Reserve Bank of India incaricata del coordinamento tecnico. Il testo approvato dai leader racconta un’altra storia. La Dichiarazione di Nuova Delhi, 140 paragrafi adottati per consenso, si limita a «prendere atto» del lavoro svolto dalla BRICS Payment Task Force sull’interoperabilità dei canali di pagamento e di messaggistica e sulle discussioni relative al regolamento in valute locali, precisando che ciò avviene nel rispetto delle priorità nazionali e nella consapevolezza che non esiste una soluzione valida per tutti. La proposta indiana di collegare le valute digitali delle banche centrali, su cui Nuova Delhi aveva investito una parte consistente del capitale politico della propria presidenza, nel documento non compare.

La distanza tra attese e risultato non va letta come un incidente diplomatico. Riflette due condizioni strutturali che la pubblicistica sulla de-dollarizzazione tende a sottovalutare. La prima è che i Paesi BRICS, presi uno per uno, hanno ancora buone ragioni per regolare in dollari una parte rilevante dei propri scambi. La seconda è che un sistema di pagamento comune non è un problema di ingegneria finanziaria. È un atto di governo condiviso, che richiede regole vincolanti, un’istanza di arbitrato e la disponibilità a fidarsi delle banche centrali altrui. A Nuova Delhi nessuna di queste condizioni era sul tavolo.

Il nome induce in errore. BRICS Pay non è una moneta e non è, almeno nella configurazione discussa finora, un circuito di regolamento. È un livello di interoperabilità pensato per mettere in comunicazione sistemi nazionali già esistenti: il russo SPFS, nato dopo le sanzioni del 2014; il cinese CIPS, operativo dal 2015; l’indiano UPI e il brasiliano Pix, costruiti per i pagamenti domestici istantanei e solo in seguito proiettati all’estero. Il progetto ha preso forma durante la presidenza russa del 2024, nel quadro della BRICS Cross-Border Payments Initiative accolta a Kazan, un’iniziativa che la stessa dichiarazione di quel vertice qualificava come volontaria e non vincolante.

Per capire dove si colloca il progetto conviene distinguere tre piani che il dibattito pubblico confonde di continuo. Il primo è la messaggistica, cioè la trasmissione standardizzata degli ordini di pagamento tra istituzioni finanziarie: è il terreno di SWIFT, ed è qui che BRICS Pay si propone come alternativa. Il secondo è il regolamento, il trasferimento effettivo di valore tra conti presso banche centrali o banche corrispondenti, con tutto ciò che comporta in termini di liquidità, rischio di controparte e gestione dei saldi. Il terzo è l’unità di conto, la moneta in cui i contratti sono denominati. Un’alternativa a SWIFT agisce soltanto sul primo piano. Se un esportatore indiano fattura in dollari e la banca russa regola in dollari presso un corrispondente, aver trasmesso il messaggio su un canale non occidentale cambia ben poco.

L’interoperabilità ha però un vantaggio politico evidente, ed è la ragione per cui è diventata la formula di compromesso del gruppo: consente a ciascun Paese di conservare la propria moneta e il proprio sistema finanziario. Una moneta comune imporrebbe rinunce di tutt’altra portata, dalle regole di emissione e di cambio alla gestione dei Paesi strutturalmente in avanzo o in disavanzo. Non a caso Sudhakar Dalela, segretario per le relazioni economiche del ministero degli Esteri indiano, ha ribadito durante il vertice che una valuta BRICS non è in discussione, aggiungendo la prudente clausola «per ora».

La storia del dossier è la storia di un lessico che avanza di millimetri. Nel 2010, a Brasília, i quattro Paesi fondatori si impegnavano a studiare la fattibilità di una cooperazione monetaria e di accordi di regolamento in valuta locale. A Ufa, nel 2015, si riconosceva il potenziale delle valute nazionali; a Xiamen, due anni dopo, si parlava di swap valutari e di investimenti diretti in moneta locale. Dal 2019 l’attenzione si è spostata sulle infrastrutture di pagamento, con l’avvio dei lavori della Payment Task Force. Johannesburg, nel 2023, ha evocato per la prima volta l’interconnessione dei sistemi di pagamento transfrontalieri; Kazan ha lanciato l’iniziativa volontaria; Rio, nel 2025, ha accolto un rapporto tecnico sul sistema di pagamenti transfrontalieri BRICS che a oltre un anno di distanza non è stato reso pubblico. Sedici anni dopo Brasília, Nuova Delhi «prende atto». La successione dei verbi (studiare, riconoscere, accogliere, prendere atto) è già un indicatore: in un organismo che decide per consenso, il grado di impegno reale si legge nella grammatica dei comunicati.

L’ambizione indiana e il prezzo del consenso

L’India aveva fatto dei pagamenti transfrontalieri uno dei pilastri della propria presidenza. A gennaio la Reserve Bank of India aveva proposto di collegare le valute digitali di banca centrale dei Paesi membri per facilitare commercio e turismo; ad agosto il governatore Sanjay Malhotra confermava che erano in corso discussioni sul collegamento dei sistemi di pagamento veloce e delle CBDC; alla vigilia del vertice il ministro del Commercio Piyush Goyal rilanciava l’invito a regolare gli scambi in moneta locale. Già il 10 settembre, tuttavia, Reuters riferiva di ostacoli politici e tecnici in grado di limitare i progressi, e ne indicava due in particolare: l’interruzione dei rapporti finanziari tra Emirati Arabi Uniti e Iran e la riluttanza della stessa India ad approfondire la connettività finanziaria con la Cina senza una fiducia reciproca più solida.

Il secondo ostacolo merita attenzione, perché rovescia un’immagine corrente. Il freno più robusto a un’integrazione dei pagamenti BRICS non viene da Washington, ma dal Paese che presiedeva il vertice. Nuova Delhi vuole infrastrutture che rendano più semplice il commercio in rupie e più economiche le rimesse della sua diaspora. Non vuole che queste infrastrutture passino per nodi cinesi, né che il loro effetto netto sia un’espansione dello yuan in Asia meridionale. L’incontro tra Narendra Modi e Xi Jinping a margine del vertice ha segnato un disgelo prudente, ma il disavanzo commerciale indiano verso la Cina, raddoppiato nell’arco di un decennio, resta una frattura che nessun comunicato può ricomporre.

C’è poi l’effetto dell’allargamento. Con undici membri e dieci Paesi partner, il gruppo comprende oggi Stati che nella guerra del 2026 si sono trovati su fronti opposti. A maggio la riunione dei ministri degli Esteri, sempre a Nuova Delhi, si era chiusa senza un comunicato congiunto, costringendo la presidenza indiana a una dichiarazione a titolo proprio. L’unanimità di settembre è stata ottenuta abbassando la soglia degli impegni. La dichiarazione critica dazi e sanzioni unilaterali senza nominare gli Stati Uniti e, sul dossier finanziario, rinvia a un lavoro tecnico di cui non fissa né scadenze né obiettivi. Ajay Srivastava, fondatore del Global Trade Research Initiative, ha osservato che il testo non prevede alcuna azione concreta e che, in assenza di un piano coordinato, il commercio in valute locali potrà crescere solo gradualmente, senza raggiungere volumi significativi.

Va segnalato, per scrupolo di metodo, che alcune testate hanno presentato il vertice come il momento del «lancio» di BRICS Pay. Il testo della dichiarazione, così come riportato dalle fonti che lo hanno esaminato nel dettaglio, non autorizza questa lettura. La confusione tra annuncio e realizzazione è uno dei tratti ricorrenti della comunicazione sul tema, e contribuisce a gonfiare aspettative che poi ricadono sulla credibilità del gruppo.

Le buone ragioni del dollaro

Le statistiche disponibili spiegano meglio di qualsiasi dichiarazione perché la de-dollarizzazione resti, per ora, più un tema di dibattito che una tendenza misurabile. Secondo l’ultima indagine triennale della Banca dei regolamenti internazionali, nell’aprile 2025 il dollaro compariva in circa l’89% delle transazioni valutarie mondiali, una quota in lieve aumento rispetto al 2022, mentre lo yuan si fermava all’8,5%. Sul versante delle riserve, i dati del Fondo monetario internazionale indicano per il primo trimestre del 2026 una quota del dollaro pari al 57,13%, contro l’1,99% della valuta cinese. La tendenza di lungo periodo è di erosione: intorno al 1999 il dollaro superava il 70% delle riserve allocate. Ma la diversificazione si disperde su una costellazione di valute minori, la cui quota residua è più che raddoppiata dal 2021, e non si concentra sulle monete dei Paesi BRICS.

La ragione non è la sudditanza, è il calcolo. Il dollaro offre ciò che nessuna alternativa offre ancora: mercati profondi e liquidi, strumenti di copertura a basso costo, un enorme stock di debito denominato nella stessa valuta e la possibilità di convertire in qualsiasi momento il ricavato di una transazione in un attivo considerato sicuro. Barry Eichengreen ha descritto questi vantaggi in termini di effetti di rete: una moneta è utile in proporzione al numero di soggetti che già la usano, e ciò rende costosa qualunque transizione tentata da un solo attore o da un piccolo gruppo. Per un importatore brasiliano o un esportatore indonesiano pagare in dollari significa pagare nella moneta che la controparte accetta senza trattare.

Scendendo al livello dei singoli membri, il quadro si fa ancora più netto. L’India ha dichiarato a più riprese di non avere interesse a indebolire il dollaro: nel dicembre 2024 il ministro degli Esteri Subrahmanyam Jaishankar ricordava che gli Stati Uniti sono il primo partner commerciale del Paese, e nell’estate 2025 il portavoce del ministero ribadiva che la de-dollarizzazione non rientra nell’agenda finanziaria indiana. Emirati Arabi Uniti e Arabia Saudita mantengono le proprie valute ancorate al dollaro e fondano la propria sicurezza su un rapporto con Washington che nessun circuito di pagamento alternativo potrebbe compensare. Riyadh, del resto, continua a stare nel gruppo in una posizione ambigua: la presidenza indiana la elencava tra gli undici membri, ma a Nuova Delhi la delegazione saudita si è presentata con lo status di Paese invitato. Egitto ed Etiopia, che negli ultimi anni hanno negoziato programmi con il Fondo monetario e portano un debito estero in valuta forte, non possono permettersi di complicare il rapporto con i propri creditori. Il Brasile di Lula ha rilanciato più volte l’idea di una moneta commerciale comune, ma il suo sistema di punta, Pix, rimane un successo domestico.

Restano la Russia e l’Iran, per i quali l’uscita dal dollaro non è una scelta ma una necessità imposta dalle sanzioni, e la Cina, che ha un interesse reale all’internazionalizzazione dello yuan ma lo persegue attraverso infrastrutture proprie, a cominciare da CIPS, e senza rinunciare ai controlli sui capitali che limitano l’attrattiva della sua moneta come riserva. Anche per chi ha le motivazioni più forti, tuttavia, il regolamento in valute locali ha mostrato limiti precisi. L’esperienza russo-indiana è istruttiva. Il forte aumento delle importazioni indiane di petrolio russo dopo il 2022 ha lasciato Mosca con ingenti saldi in rupie difficili da impiegare, un problema che lo stesso Sergej Lavrov ammise pubblicamente nel maggio 2023. Quando gli scambi sono squilibrati, la moneta del Paese in disavanzo si accumula presso il Paese in avanzo, e il dollaro torna a essere la via d’uscita più semplice.

A questi incentivi si somma il costo esplicito di una rottura. Donald Trump ha minacciato dazi del 100% contro i Paesi BRICS che sostenessero una moneta alternativa al dollaro e, dopo il vertice di Rio del 2025, un dazio aggiuntivo del 10% per chi si allineasse alle politiche del gruppo da lui definite antiamericane. Alla vigilia di Nuova Delhi l’economista di Natixis Alicia García-Herrero prevedeva che i leader avrebbero discusso di pagamenti transfrontalieri senza tentare di sostituire il dollaro. È andata esattamente così.

Una scelta politica

Si arriva così al punto centrale. Un sistema di pagamento non è un’infrastruttura neutrale. Susan Strange collocava la struttura finanziaria, cioè il controllo sul credito e sui canali attraverso cui circola, tra le quattro fonti del potere strutturale nell’economia politica internazionale. Gli Stati che controllano i nodi centrali delle reti economiche globali, di cui SWIFT è l’esempio canonico, possano trasformarli in strumenti di coercizione, sfruttandone sia la funzione di osservatorio sia la capacità di esclusione. È proprio questa esperienza, culminata nell’esclusione delle principali banche russe da SWIFT nel 2022, ad aver dato slancio politico al progetto BRICS.

La stessa lezione, però, vale all’interno del gruppo. Chi costruisce una rete alternativa deve stabilire dove si trovano i nodi, chi ne gestisce i dati, quale diritto regola le controversie, chi fornisce liquidità nei momenti di tensione e come si compensano i saldi tra economie in avanzo e in disavanzo. Ognuna di queste decisioni redistribuisce potere. Per l’India un sistema imperniato su CIPS significherebbe sostituire una dipendenza da Washington con una dipendenza da Pechino, cioè da un rivale con cui condivide una frontiera contesa. Per gli Emirati collegarsi a un circuito in cui transita l’Iran vorrebbe dire esporsi al rischio di sanzioni secondarie, proprio mentre i due Paesi escono da una guerra vissuta su fronti opposti. Il problema non è la tecnologia: le componenti nazionali esistono e funzionano. Manca un accordo su chi governa l’insieme.

La storia monetaria del Novecento offre due riferimenti utili. Il primo è la proposta keynesiana di una International Clearing Union, presentata dal Tesoro britannico nel 1943, che affrontava esattamente il nodo degli squilibri persistenti imponendo oneri simmetrici ai Paesi in avanzo e a quelli in disavanzo. Un BRICS Pay che volesse andare oltre la messaggistica avrebbe bisogno di un meccanismo analogo di compensazione multilaterale, e dunque di regole capaci di vincolare anche la Cina, principale creditore commerciale del gruppo. Il secondo riferimento è la tesi di Charles Kindleberger sulla stabilità del sistema internazionale come bene pubblico, che richiede un attore disposto a sostenerne i costi. Nell’ordine del dollaro quel ruolo è svolto, con tutti gli abusi che ne derivano, dagli Stati Uniti. Nel partenariato BRICS l’unico candidato plausibile è la Cina, e gli altri membri non intendono riconoscerle quella funzione. Qui sta il dilemma costitutivo di un ordine monetario multipolare: moltiplica i poli, ma lascia vacante il posto di chi garantisce il sistema.

A ciò si aggiunge la fragilità istituzionale. Il gruppo opera senza un segretariato permanente, con presidenze annuali a rotazione che affidano la continuità dei dossier tecnici alla volontà del Paese di turno. L’allargamento ha accresciuto l’eterogeneità degli interessi senza dotare il partenariato di strumenti decisionali più robusti. Un sistema di pagamento unificato richiederebbe un trattato, o almeno un accordo vincolante di governance, mentre l’iniziativa sui pagamenti transfrontalieri è, per esplicita scelta dei firmatari, volontaria e non vincolante. Finché questa asimmetria tra ambizione e forma giuridica non sarà sciolta, BRICS Pay resterà ciò che è oggi: un marchio politico sovrapposto a un insieme di corridoi bilaterali. La stabilità del partenariato non è dunque una condizione accessoria del progetto. Ne è il presupposto.

Verso la presidenza cinese del 2027

Con il passaggio della presidenza alla Cina per il 2027, l’orizzonte di valutazione più utile è quello dei prossimi diciotto-ventiquattro mesi. Le valutazioni che seguono poggiano su evidenze di qualità moderata, costituite in larga parte dai testi ufficiali e dalla stampa economica internazionale.

Lo scenario che considero altamente probabile è quello di un mosaico bilaterale. Crescono i corridoi già avviati, come quelli tra India ed Emirati e tra India e Russia, mentre l’architettura comune resta allo stadio di studio. Il commercio in valute locali aumenta in termini assoluti, ma la quota del dollaro negli scambi intra-BRICS si riduce solo in misura marginale.

Uno scenario alternativo, cui attribuisco una probabilità moderata, prevede che la presidenza cinese usi il 2027 per promuovere un nucleo a geometria variabile, costruito attorno a CIPS e SPFS, con l’adesione di Russia, Iran e di alcuni Paesi partner. Il marchio BRICS Pay verrebbe formalmente attivato, ma per una parte soltanto del gruppo e con ogni probabilità senza l’India. Sarebbe un risultato politicamente spendibile per Pechino e Mosca, ma renderebbe esplicita la frattura che oggi il linguaggio delle dichiarazioni riesce ancora a coprire.

L’entrata in funzione, entro il 2028, di un sistema unificato e operativo per tutti i membri resta invece altamente improbabile.

Gli indicatori da seguire sono pochi e concreti: la pubblicazione del rapporto tecnico accolto a Rio; l’eventuale firma di un accordo vincolante sulla governance dei pagamenti; la creazione di un meccanismo multilaterale di compensazione o di linee di swap dedicate, magari affidate alla Nuova Banca di Sviluppo; la posizione indiana su un collegamento con CIPS; la formalizzazione, o il definitivo abbandono, della membership saudita. Un comunicato che parli di «lancio» senza alcuno di questi elementi andrà letto per ciò che è, un annuncio.

Il multipolarismo ha finora prodotto soprattutto una pluralità di opzioni nazionali, utili a ciascun Paese per ridurre l’esposizione alle sanzioni e per negoziare da posizioni migliori con Washington. Trasformare queste opzioni in un sistema richiede un partenariato che riconosca un interesse comune più forte delle rivalità interne. Quel partenariato è ancora in evoluzione, e BRICS Pay ne seguirà i tempi, non il contrario.

Iran Accuses U.S. of Oil Smuggling in Strait of Hormuz

12 October 2026 at 23:10
Iran accuses United States of smuggling oil and warns of new measures amid tensions over the Strait of Hormuz. Photo: EFE.

Iran’s top security official accused the commander of U.S. Central Command of organizing oil smuggling through the Strait of Hormuz and warned of “new capabilities” if Washington strikes again, sharpening tensions over the strategic waterway.


Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, made the claims in statements to Press TV on Monday, October 12. He alleged that Centcom commander Brad Cooper is behind operations in which small boats transfer crude oil to large tanker ships.

According to Rezaei, Iranian forces attack between five and six of these boats every night, which he described as illicit activities linked to U.S. actors.

RELATED: Iran and Oman to Present Safe Routes in the Strait of Hormuz

Those nightly operations, Rezaei said, target illicit activities tied to U.S. actors. Neither Washington nor Abu Dhabi had commented on the allegations by the time they were broadcast.

The accusation came as a direct rebuttal to President Donald Trump, who had declared that the strait remains open. Rezaei countered that Iran maintains control of the maritime corridor, which is essential to the global transport of oil and other raw materials.

His remarks echo earlier comments by Deputy Foreign Minister for Legal and International Affairs Kazem Gharibabadi, who said that the transit of commercial vessels through Hormuz without prior coordination remained prohibited. Gharibabadi added that a return to normal navigation would depend on Washington meeting its international obligations and abandoning what he called the military path.

"The American attack on Iran was one of the most FOOLISH wars in HUMAN HISTORY"

– Major General Mohsen Rezaei

Follow: https://t.co/oa9JV4ikYQ pic.twitter.com/IZcY1LevmK

— Press TV 🔻 (@PressTV) October 12, 2026

Threats Against Infrastructure

Rezaei warned that Tehran would turn to “new capabilities” if United States launches another attack, without detailing what those measures would be. Among possible responses, he mentioned strikes on regional data transmission infrastructure, processing centers and facilities linked to artificial intelligence, assets that, he said, are not yet on Iran’s target list.

He cautioned that a new offensive could destroy a significant portion of those facilities and cables, whose value he estimated at more than $2 trillion. That figure is Rezaei’s own estimate and was not corroborated by other sources.

Mohsen Rezaei, Secretary of Iran’s Supreme National Security Council: If War Resumes, Iran Will Destroy More Than $2 Trillion in U.S. Assets in the UAE and Along the Strait of Hormuz; Persian Gulf Cannot Be Secured Without Iran’s Management of Hormuz pic.twitter.com/DrRZAJkY4L

— MEMRI (@MEMRIReports) October 12, 2026

The statements come amid persistent tensions between Tehran and Washington, following the confrontations that began on February 28, when the United States and Israel launched joint military strikes against Iran. Tehran responded with actions against Israel and against what it described as U.S. military installations in Arab countries.

Although both sides signed a memorandum of understanding in June, sporadic attacks, the continued presence of U.S. forces in the region and disagreements over navigation in Hormuz continue to complicate negotiations.

The Strait of Hormuz is one of the world’s most important energy chokepoints, and any disruption to traffic there can ripple through global oil markets. Neither government has said whether talks are scheduled, and it remains unclear how the competing claims about who controls the waterway will be resolved.

EU Caps Chinese Hybrid Car Imports at 350,000 as Brussels Moves to Protect Europe’s Motor Industry

12 October 2026 at 23:03

The European Union has reached an agreement with China to restrict imports of Chinese hybrid vehicles to 350,000 annually, introducing a significant new barrier to the expansion of Chinese manufacturers in Europe’s automotive market.

The arrangement, confirmed on 12 October, follows months of negotiations between Brussels and Beijing and reflects growing concern about the competitive position of European carmakers.

The import ceiling could reduce Chinese hybrid vehicle sales in the EU by more than half compared with previously anticipated volumes, although the actual effect will depend on demand, product classifications and implementation.

The agreement comes as manufacturers gather for the Paris Motor Show, where the future of European vehicle production, Chinese competition and industrial policy have become central subjects.

China’s Commerce Ministry has presented the outcome as a negotiated arrangement intended to preserve trading relations, while the European side has emphasised the need to prevent rapidly increasing imports from undermining domestic production.

Chinese manufacturers confront a new European barrier

Chinese carmakers have expanded aggressively in overseas markets as domestic demand has weakened. Chinese passenger vehicle exports rose sharply in September, with manufacturers increasingly targeting Europe, Latin America and Asian markets.

Hybrid vehicles have become particularly important because they offer consumers lower fuel consumption without requiring the same degree of dependence on charging infrastructure as fully electric cars.

This has allowed Chinese brands to compete in market segments where European manufacturers retain substantial established production capacity.

The new quota limits the number of eligible Chinese hybrid vehicles permitted to enter the European market each year. According to details of the import restrictions, shipments exceeding the permitted volume would face restrictions at EU customs.

The mechanism differs from a conventional tariff because imports beyond the ceiling cannot simply enter the market by paying a higher duty. Manufacturers and importers will need to consider both delivery costs and the availability of import allocations.

European manufacturers seek protection

The measures arrive amid growing pressure on the European automotive industry, which faces high production costs, expensive energy, competition from Chinese manufacturers and the capital requirements of shifting towards electrified transport.

Companies operating in Germany, France, Italy and other established manufacturing centres must fund the development of new vehicles while maintaining existing factories and employment.

Chinese manufacturers benefit from extensive domestic production networks, considerable scale and access to battery manufacturing capacity.

European policymakers have questioned whether competition takes place under equivalent economic conditions, particularly where Chinese producers receive support from state-directed industrial policies.

Beijing rejects allegations that its export performance results principally from unfair state assistance, arguing that Chinese companies have achieved competitiveness through investment, innovation and efficiency.

The quota represents a departure from the assumption that European consumers will necessarily have unrestricted access to the lowest-priced imported vehicles.

Its economic effects will depend partly on whether European manufacturers can use the additional protection to improve productivity and develop more competitive models.

Will Chinese manufacturers move production into Europe?

Restrictions on imports do not necessarily reduce the presence of Chinese-owned companies in the European automotive industry.

Several manufacturers are already developing production capacity outside China, including within the European Union. BYD’s investment in Hungary is one example of how Chinese companies can pursue access to European consumers through local manufacturing rather than relying entirely on imported finished vehicles.

The new arrangements could strengthen the commercial incentive to expand such operations.

For European governments, Chinese investment presents a difficult calculation. New factories may create employment, increase industrial activity and preserve automotive supply chains, while also expanding the influence of Chinese manufacturers within Europe’s domestic market.

The economic consequences depend on how much research, component manufacturing, battery production and other high-value activity takes place locally.

A Chinese-owned assembly plant using predominantly imported components would provide different benefits from a fully developed European production network.

The British dimension

The debate is also drawing attention to the position of the United Kingdom, whose automotive industry remains closely integrated with European supply chains despite Brexit.

Executives from Stellantis and Renault have supported including Britain within proposed European industrial protection measures, reflecting the importance of UK manufacturing operations to their broader businesses.

Such an arrangement would raise questions about regulatory alignment, trade preferences and the conditions under which non-EU production could qualify for European industrial support.

British manufacturers also face the challenge of Chinese competition, and decisions taken in Brussels could influence investment strategies across the wider European automotive sector.

Protection versus competitiveness

The restrictions may offer European manufacturers additional time to adapt, but they do not eliminate the structural challenges confronting the industry.

Energy prices, labour costs, the availability of batteries and the affordability of new vehicles remain important factors in the competitiveness of European production.

Nor will the quota necessarily prevent Chinese firms from gaining market share through investment, partnerships or vehicles manufactured outside China.

The EU’s approach combines restrictions on imports with the possibility of continued Chinese industrial participation inside Europe.

The outcome will depend on whether European manufacturers use the reduced competitive pressure to strengthen their technological and manufacturing position, or whether the restrictions primarily accelerate the relocation of Chinese-owned production into the EU.

EU trade chief hails ‘crucial first step’ as Beijing talks avoid trade war

9 October 2026 at 15:51

EU and Chinese officials agreed a series of trade concessions covering electric cars, rare earths and tariffs that dragged them away from a damaging trade war on Friday (9 October), following two days of crisis talks.

Following two days of talks in Beijing, EU trade commissioner Maroš Šefčovič said that he and China’s commerce secretary Wang Wentao had made a “crucial first step” towards rebalancing EU-China trade relations.

Europe can point to progress on hybrid vehicles, stronger assurances over the supply of critical raw materials, and continued engagement on market access issues in China.

Hours before Šefčovič arrived, Beijing rejected an EU demand for so-called “voluntary export restrictions” on its electric vehicles (EVs). However, in a joint statement on Friday, the two sides said that they had reached an “understanding on trade in hybrid vehicles in a WTO compliant manner”, but without providing further details.

They added that further negotiations on reducing tariffs and minimum pricing deals would allow Chinese EVs to enter the EU at a lower duty rate.

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China Rejects EU Hybrid Car Export Limits as Brussels Considers New Tariffs

9 October 2026 at 07:04

Beijing’s refusal to restrict shipments of Chinese hybrid vehicles has sharpened a dispute over Europe’s widening trade deficit, with EU Trade Commissioner Maroš Šefčovič seeking concessions during negotiations in China.

China has rejected a European Union request to restrict exports of hybrid cars to Europe, increasing the likelihood of new trade defence measures against Chinese manufacturers as negotiations continue in Beijing.

The disagreement comes during a visit by EU Trade Commissioner Maroš Šefčovič, who is seeking commitments from Chinese officials to address the bloc’s growing trade deficit and improve access for European businesses to the Chinese market.

According to accounts of the negotiations, Beijing has declined the EU’s proposal for voluntary restrictions. The European Commission is consequently considering safeguard measures that could limit hybrid vehicle imports or impose additional tariffs when shipments exceed specified thresholds.

No final decision has been announced, and the precise scope of any restrictions remains under discussion.

The dispute adds another difficulty to EU–China economic relations before European leaders meet in Brussels on 15–16 October, when the bloc’s commercial relationship with Beijing is expected to feature prominently.

Hybrid Vehicles Become New Trade Battleground

The latest confrontation follows the introduction of EU countervailing duties on battery-electric vehicles manufactured in China in October 2024.

Those measures, imposed after an investigation into Chinese state subsidies, did not cover hybrid vehicles.

Chinese manufacturers have since increased their presence in Europe’s hybrid market, offering competitively priced vehicles that combine combustion engines with electric propulsion.

The European Commission previously confirmed that its original anti-subsidy investigation applied specifically to battery-electric vehicles and could not automatically be extended to hybrids.

Consequently, any additional import restrictions must have a separate legal basis.

One option under consideration is a safeguard mechanism that would permit a defined quantity of imports before higher tariffs apply.

Such a measure would differ from the existing anti-subsidy duties, which target alleged unfair financial support provided to manufacturers.

Safeguard restrictions are designed to address injury caused by increased imports. They may also create difficulties for Brussels because measures directed at a particular product can affect suppliers from countries other than China.

Japan, South Korea and Britain could therefore face consequences depending on the structure and legal basis of any proposed restrictions.

Trade Deficit Exceeds €360 Billion

The dispute is taking place against a widening imbalance in goods trade between the European Union and China.

The EU’s annual merchandise trade deficit with Beijing has reached approximately €360 billion, equivalent to almost €1 billion per day.

European officials are particularly concerned about Chinese industrial overcapacity and the export of manufactured goods at prices that European producers struggle to match.

During the latest trade negotiations, Brussels has sought commitments concerning market access, import volumes and restrictions affecting European companies.

Chinese exports of plug-in hybrid vehicles to the EU have reportedly increased by 86 per cent over the past year, while battery-electric vehicle imports have risen by approximately 40 per cent.

This expansion has intensified pressure on European manufacturers already confronting high production costs, weak demand in some domestic markets and substantial expenditure on electrification.

EU Today reported in September that Brussels had requested voluntary restrictions on Chinese hybrid exports as part of a broader effort to rebalance commercial relations.

Beijing’s refusal has now brought the possibility of unilateral European measures closer to consideration.

Germany and France Seek Stronger Protection

Germany and France have increasingly aligned their positions on the need for stronger European instruments to address unfair competition and dependence on Chinese industrial supply chains.

France has long advocated a more interventionist European industrial policy, while German manufacturers have traditionally placed greater emphasis on preserving commercial access to China.

That calculation is changing as Chinese competitors strengthen their position in the European automotive market.

The problem is particularly sensitive for Germany, whose automotive industry depends on extensive supplier networks, skilled employment and exports.

German manufacturers also operate significant businesses in China, meaning that new European trade measures could expose them to retaliation in one of their principal overseas markets.

China has already responded to previous European restrictions with trade investigations and duties affecting agricultural products and alcoholic beverages.

Further measures against Chinese vehicle imports could therefore extend the dispute into sectors unrelated to the automotive industry.

Brussels Faces Difficult Legal Choices

The European Commission must determine whether voluntary arrangements can produce measurable reductions in Chinese exports or whether formal restrictions are required.

The legal distinction between anti-subsidy duties and safeguard measures will be particularly important.

The existing electric-vehicle tariffs were introduced following an investigation that examined subsidies and their effects on European manufacturers.

A safeguard mechanism would require a different assessment, including evidence concerning increased imports and injury to domestic producers.

It would also have to comply with the EU’s international trade obligations.

Meanwhile, Chinese manufacturers are developing production facilities within Europe, potentially reducing their exposure to tariffs imposed on imported vehicles.

EU Today’s earlier examination of the proposed hybrid tariffs considered the broader consequences of Chinese investment in European manufacturing and the bloc’s dependence on critical raw materials.

The negotiations in Beijing are expected to influence whether the Commission proceeds with formal restrictions or continues seeking a negotiated settlement.

The immediate question is whether China is prepared to offer concessions sufficiently substantial to persuade Brussels that additional tariffs are unnecessary.

With EU leaders due to discuss relations with Beijing next week, the dispute has become a test of the Commission’s willingness to use trade defence instruments against one of Europe’s largest commercial partners.

EU trade chief Šefčovič has no cards to play on China ‘ultimatum’ trip

8 October 2026 at 16:32

Persuading China that its €1bn daily trade surplus with the EU is not sustainable was always going to be a hard sell for EU trade commissioner Maroš Šefčovič.  

And the early signs are that Šefčovič’s two days of talks with Chinese commerce secretary Wang Wentao, which conclude on Friday (9 October), are not going to deliver the breakthrough demanded by EU leaders when they gather for a summit in Brussels next week. 

“The message around the table was clear: the need to improve access to the Chinese market, while boosting our economic security,” Šefčovič posted on X ahead of the first day of talks. 

But rhetoric aside, three months after the EU Commission set up a series of ‘work streams’ with Chinese officials, with a mandate to address the multi-layered EU-Sino trade dispute, it is hard to see much tangible progress. 

Hours before Šefčovič arrived, Beijing rejected an EU demand for so-called “voluntary export restrictions” on its electric vehicles (EVs). 

In August, data published by Schmidt Automotive Research found that 14 percent of EV sales across Europe this year were Chinese-made, up from 9.4 percent last year. 

That is despite the EU imposing additional tariffs of between 17 and 36 percent on Chinese EVs in October 2024. 

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Mexican Auto Exports Slump in September as US Tariffs Take Toll

8 October 2026 at 12:59
Mexico's auto exports posted their biggest slump so far this year, data from statistics office INEGI showed on Wednesday, a decline analysts attributed to tariff policies from the US, the biggest market for the Latin American country's top industrial sector.

France and Germany Split Over Who Should Qualify as ‘Made in Europe’

8 October 2026 at 08:30

France and Germany are at odds over how the European Union should define European production under its emerging industrial preference rules, with Paris favouring a narrow EU-only system while Berlin wants trusted trade partners including Britain, Canada and Japan to remain eligible.

France and Germany have reopened a fundamental dispute over the European Union’s “Made in Europe” industrial policy, this time over the question that will determine how far-reaching the programme eventually becomes: which countries should qualify as European suppliers.

The disagreement centres on the Industrial Accelerator Act, under which the EU wants to use subsidies and public procurement to strengthen domestic manufacturing and reduce dependence on Chinese production in strategic sectors.

France is pressing for a restrictive definition centred on manufacturing within the EU’s 27 member states. Germany favours a broader approach that could extend preferential treatment to countries with close trade agreements or reciprocal industrial relationships with the Union.

That could bring Britain, Canada, Japan and potentially Turkey within the system rather than treating their products in the same way as goods from China and other outside suppliers, according to reporting on the Franco-German dispute.

The dispute has important consequences because “Made in Europe” is intended to influence how large amounts of public money are spent.

The Industrial Accelerator Act is designed to introduce European-content requirements into selected subsidy schemes and public contracts in sectors including electric vehicles, batteries and clean technology. The underlying objective is to ensure that European public spending supports European industrial capacity rather than increasing dependence on imported technologies.

EU Today has followed the argument since the proposals began taking shape. In February, it reported that the Commission was preparing local-content rules for strategic technologies. The debate has since moved from whether such preferences should exist to how broadly “European” should be interpreted.

Paris wants the benefits concentrated inside the EU. The French position reflects concern that allowing manufacturers in countries with EU trade agreements to qualify could dilute the purpose of the scheme. If access is too broad, the argument runs, public procurement may do little to increase production or employment within the Union itself.

Germany is more cautious about creating a closed EU system. Its manufacturing economy is embedded in supply chains extending across Europe and into neighbouring markets, including Britain and Turkey. Berlin has therefore argued for a “made with EU” approach under which trusted trade partners could participate if their markets also provide reciprocal access to European industry.

That disagreement has become increasingly important for Britain. British manufacturers, particularly in the automotive sector, remain closely integrated into continental production networks despite Brexit.

A strict EU27 definition could therefore produce situations in which components made in Britain count as foreign content even when they are incorporated into vehicles assembled inside the Union.

France and Germany had appeared to be moving towards a broader industrial compromise last week. Their negotiations combined the “Made in Europe” question with disagreements over vehicle-emission rules and the future treatment of combustion-engine technology. The latest discussions show that one of the hardest questions remains unresolved.

There is also concern among some EU governments that an overly broad system could create routes for companies from countries such as China to obtain favourable treatment indirectly.

The argument mirrors a wider change in EU economic policy. Supply disruptions, Russia’s war against Ukraine and China’s dominance of several strategic manufacturing sectors have pushed Brussels towards a more interventionist approach.

France sees public purchasing power as an instrument for rebuilding production specifically within the Union. Germany is seeking greater flexibility for supply chains involving trusted partners and appears more concerned about the trade consequences of drawing the boundary too tightly.

For Brussels, the problem is now practical rather than theoretical. The narrower the definition, the more industrial support remains inside the EU; the broader it becomes, the easier it is to preserve existing supply chains and relations with allies.

Listen: Are we now heading to a trade war with China?

7 October 2026 at 09:31

Production: By Europod, in co-production with Sphera Network.

EUobserver is proud to have an editorial partnership with Europod to co-publish the podcast series “Briefed” hosted by Léa Marchal. The podcast is available on all major platforms.

Find the full transcript below: 

Chinese carmakers are taking an increasing share of the European car market, particularly when it comes to electric vehicles. Why are European carmakers now opening their factories to their Chinese competitors?

Until recently, the main concern in Europe was Chinese-made electric vehicles being imported into the EU. That’s why, two years ago, the EU imposed hefty tariffs on Chinese electric cars.

But Chinese manufacturers have found another way into the European market: they are setting up production here. Some are building factories of their own. Others are entering partnerships with European carmakers and using their existing production sites.

That’s the case with Stellantis and Chinese manufacturer Leapmotor. And now Dongfeng is also negotiating to produce cars at the French plant of Rennes La Janais. Because by moving production to Europe, Chinese manufacturers may be losing one of their main advantages, which is cheap labour.

But low labour costs are only one part of their competitive edge.

Chinese manufacturers also continue to benefit from state support. And setting up production in Europe doesn’t necessarily mean building brand-new factories.

In many cases, Chinese companies are looking to partner with European manufacturers and use factories that are already there — factories that are no longer operating at full capacity. That means they can save significantly on investment costs. And they can also rely on their European partners’ existing sales and distribution networks.

So how big is this Chinese presence in Europe becoming? For 2028, there are already 12 projects involving Chinese carmakers setting up production in Europe. Several are in Spain, with others in France, Belgium, Slovakia, Hungary, Sweden and Austria.

Now, why would European manufacturers allow their Chinese competitors to produce cars in their own factories? Part of the answer is that European carmakers are struggling to keep up in electric vehicles sells. And that is contributing to factory closures and job losses.

European manufacturers have to meet EU targets on average CO2 emissions each year. And producing more electric vehicles is necessary to meet those requirements.

So partnerships with Chinese manufacturers can serve two purposes: they can help European companies fulfilling their green cars objectives, while also keeping existing factories and jobs running.

Though there is a longer-term risk for European manufacturers. The more Chinese companies establish themselves in Europe, the more competitive pressure they could put on European brands — potentially even leading to takeovers. That has happened before: Volvo Cars, for example, was acquired by Chinese group Geely in 2010. 

In Germany, carmakers are for now refusing to open the doors of their production sites to the Chinese. But they do have partnerships with Chinese companies to produce vehicles in China, where they can benefit from lower production costs. That explains why they were very much opposed to imposing tariffs on Chinese electric vehicles.

But the situation is now changing. Volkswagen closed its Dresden factory last year, and other German plants are also facing closure risks. Germany’s car industry is therefore increasingly joining calls for stronger protection against Chinese competition.

And that brings us back to the Franco-German paper that is circulating in Brussels, which calls for measures to restrict Chinese access to the European market.

Because this debate goes well beyond cars. The EU is increasingly concerned about Chinese competition and dependence in a range of strategic industries. This will be discussed next week, when EU leaders meet in Brussels.

The European Commission could also present a new so-called “diversification” tool, either at the summit or around it. One possibility would be to require companies not to rely exclusively on China for certain critical materials. Something which could trigger what we call a trade war. I’ll be following that very closely!

France and Germany Seek New EU Power to Cut Market Access Over Trade Distortions

6 October 2026 at 08:41

France and Germany have proposed giving the European Commission powers to respond within days to serious trade distortions, including the possibility of restricting access to the EU single market. The initiative comes as European concern grows over Chinese subsidies, industrial overcapacity and dependence on critical imports.

French President Emmanuel Macron and German Chancellor Friedrich Merz have called for a new European Union trade instrument capable of acting rapidly against countries whose economic practices cause serious disruption to the European market.

In a joint initiative sent to European Commission President Ursula von der Leyen on Monday, the two governments proposed strengthening the EU’s ability to respond to what they describe as systemic market distortions, including dumping, widespread subsidies and restrictions affecting access to critical supplies.

The Franco-German proposal does not formally identify China as its target. However, many of the practices it describes correspond directly to long-standing European concerns over Chinese industrial policy, including excess manufacturing capacity, state support and restrictions on exports of critical minerals.

The initiative represents a further development in a harder European approach towards Beijing. EU Today reported last week that China had warned it would respond if the EU introduced new restrictions against Chinese companies or products.

Macron and Merz are proposing two additional instruments.

The first would be intended to reduce European companies’ dependence on single suppliers for strategically important products and raw materials. The second would allow the EU to restrict access to its internal market when a third country uses political or economic measures that seriously undermine fair competition.

Under the proposal, the Commission could initiate countermeasures unless a qualified majority of EU governments voted to block them. That would reverse the normal political dynamic in which Brussels must first secure sufficient support before acting.

German officials have argued that the EU needs powers comparable in effect to the United States’ Section 301 trade measures or China’s ability to restrict exports of critical raw materials.

The Commission has welcomed the Franco-German intervention as a contribution to its work on economic security and global trade imbalances. Any new instrument would, however, require legislation and approval by both EU governments and the European Parliament before it could be used.

The proposal comes amid growing concern in both Paris and Berlin over the effect of subsidised Chinese production on European manufacturers.

Germany’s position is particularly significant. Berlin has traditionally been more cautious than Paris about measures that could restrict trade with China, reflecting the importance of the Chinese market to German carmakers, engineering companies and chemical producers.

That position has shifted as German industry faces increased competition from Chinese electric vehicles, machinery and other manufactured goods.

EU Today has previously examined the emerging Franco-German alignment on tougher China trade defences and demands from German manufacturers for broader European action rather than product-by-product investigations.

The new proposals go considerably further by seeking a mechanism capable of dealing with entire sectors and acting much more quickly than conventional anti-dumping proceedings.

Chemicals, PET plastics and hybrid vehicles are among sectors identified in the Franco-German document as areas where additional action may be required.

The timing is also significant. EU leaders are due to discuss trade relations with China at their summit in Brussels on 15–16 October, while Trade Commissioner Maroš Šefčovič is expected to hold talks with Chinese officials beforehand.

The Commission is already attempting to balance two objectives: maintaining Europe’s access to the Chinese market while reducing strategic dependencies that could be used as political leverage.

The Franco-German plan would give Brussels another instrument at the more coercive end of that policy. Its eventual importance will depend on whether governments agree to create it and how readily they would permit the Commission to use it against a major trading partner.

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