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Cover Story: Europe Fortifies Against China’s New Export Juggernaut

Published: Jul. 20, 2026  4:01 p.m.  GMT+8
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The EU has unleashed tariffs and subsidy probes to blunt competition from Chinese advanced manufacturing and e-commerce giants.
The EU has unleashed tariffs and subsidy probes to blunt competition from Chinese advanced manufacturing and e-commerce giants.

A blistering summer heatwave has emptied European store shelves of Chinese portable air conditioners. While the trade of these home appliances flows unimpeded, a contentious battle is sweeping the continent over the aggressive expansion of Chinese advanced manufacturing and e-commerce into the European Union (EU).

From electric vehicles (EVs) to solar panels, a tidal wave of Chinese imports is stoking fears of a “China Shock 2.0.” As the EU grapples with economic stagnation and a shrinking industrial base, Brussels is rapidly deploying a barrage of tariffs, subsidy probes and stringent regulations aimed at stemming the tide and forcing Chinese firms to build local supply chains.

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