European People’s Party drafts tougher EU-China trade stance without seeking decoupling

A harder line short of confrontation

The European People’s Party is preparing a policy paper that calls for the European Union to use its trade-defence tools more forcefully against Chinese market barriers while avoiding wholesale economic separation. Euronews reviewed an early version of the document, which is expected to be completed in mid-October. The proposal is not EU law, but the EPP’s institutional weight gives its developing position significance before the next European Council meeting.

Four areas of pressure

The draft centres on trade and investment rebalancing, export controls, intellectual-property protection and reform of the World Trade Organization. It also advocates tighter customs enforcement, closer scrutiny of e-commerce platforms and diversification away from dependence on Chinese critical materials. Aviation, semiconductors, pharmaceuticals and biotechnology are identified as sectors in which Europe should strengthen its own capacity. The approach pairs defensive tools with continued dialogue rather than endorsing permanent protectionism.

Why the EPP matters

The centre-right group holds the largest bloc of seats in the European Parliament and is represented across much of the European Commission. Its lawmakers can shape parliamentary amendments, coalition bargaining and the political environment in which the Commission exercises trade powers. The draft nevertheless remains a party document: its contents may change, and any new binding restrictions would require action by the competent EU institutions under the relevant legal procedures.

Existing tools are already being tested

The European Commission launched a consultation on September 10 for the first review of the International Procurement Instrument. That mechanism allows the EU to investigate restrictions facing European companies in foreign procurement markets and, if consultations fail, limit access to EU tenders. China was the subject of the instrument’s first investigation, concerning medical devices, and targeted restrictions were introduced in 2025 after the Commission found no acceptable solution.

Leverage rather than isolation

The EPP draft argues that trade measures should be proportionate and temporary, serving as bargaining leverage rather than a path to permanent disengagement. It also points to free-trade agreements with other partners as a way to diversify supply chains. That distinction matters because European manufacturers depend on Chinese inputs and customers even as governments worry about subsidies, industrial overcapacity, critical materials and unequal access to procurement markets.

What to watch

The decisive test will come when the EPP finalises the paper and translates it into parliamentary positions on procurement, customs enforcement and economic-security legislation. Changes between the leaked draft and the October text will show whether the group moves closer to industry demands for protection or to governments wary of retaliation. The Commission’s procurement consultation, which runs until November 27, will provide another channel through which businesses and public authorities can influence the practical design of EU leverage.