Irked By China's Coercion, EU To Bar Beijing From Profitable Sectors

The European Union (EU) is set to unveil a powerful new trade weapon that could result in China and other countries accused of economic bullying being shut out of lucrative parts of the EU market, Finnbar Bermingham reported for the South China Morning Post (SCMP).

Photo Insert: Could the trade war with China be spilling over to Europe?

The anti-coercion instrument will target states that try to “interfere in the legitimate sovereign choices” of the EU or one of its 27 member states “by applying or threatening to apply measures affecting trade or investment,” according to a draft proposal seen by the SCMP.

It lays out a large range of punitive actions the EU can take when it is satisfied that coercion is taking place, including tariffs, suspension of market access through the use of quotas or trading licenses, and restricted access to public procurement programs and investment markets.

EU member-states have been appalled by what they claim to be meddling by China, its dubious business practices, and extreme pressure on trade policy as its resorts to import bans of countries seen as cozying with Taiwan.

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