EU leaders meeting in Brussels are uniting around a tougher trade stance on China, driven by a record trade deficit of $34.8bn in September. A Franco-German paper is pushing for new trade defence tools to reduce reliance on Chinese industrial inputs, with the European Commission expected to propose measures by the end of the year. But a key split remains over carbon pricing rules, which could shape how the EU balances climate goals with competitiveness. The carbon pricing clash matters for anyone following carbon border measures like CBAM. If the EU links trade defence to carbon rules, the risk is that climate policy becomes a tool for protecting domestic industry rather than cutting emissions. The final package will show whether the EU keeps the climate logic intact or waters it down to win over member states. For clean tech supply chains, the timing of any trade measures will be critical, since solar, battery, and grid components still depend heavily on Chinese manufacturing.
