The European Union's 27 member states have unanimously agreed on the economic threat posed by China's trade policy, with a growing trade deficit exceeding €1 billion ($1.2 billion) a day.
The EU is worried about China's state-subsidized products, stranglehold on critical minerals and chips, and the bloc's inability to withstand the onslaught.
EU leaders are expected to discuss upcoming trade talks with Beijing and explore possible responses, including new trade tools.
French President Emmanuel Macron warned that the EU may take 'strong measures,' including potential tariffs, if Beijing fails to address the trade imbalance.
The EU's chief trade negotiator, Maros Sefcovic, said Europe's trade relationship with China is 'simply not sustainable' and that 'diversification requires a dedicated instrument.'
Member states agree on the need to diversify their supply chains away from China, but the process is expected to take years.
The EU is considering making existing defensive trade tools more agile, bolstering the staff of the European Commission's trade department, and adopting entirely new instruments.
