2 October 2026
A new EU Structural Rebalancing Instrument to respond to China’s export surge
Description
Europe’s existing trade-defence instruments, designed to address individual products, are ill-suited to the systemic and cross-sectoral character of China’s export surge. The authors therefore propose a Structural Rebalancing Instrument, using sector-wide triggers and tariff-rate quotas to protect historical trade flows while responding to new surges. The SRI is conceived not as an alternative to negotiation, but as the credible Plan B that gives the EU greater leverage to negotiate a durable rebalancing with China while defending the multilateral trading system.
