European leaders are currently reevaluating the bloc’s approach to Beijing, with growing calls to stop treating human rights as a peripheral concern in favor of integrating them directly into economic and foreign policy. This shift follows a series of high-level meetings, including the European Council on June 19, where the European Commission was granted a mandate to develop trade defense instruments against subsidized imports. Furthermore, at the Franco-German Ministerial Council held on July 16-17, France and Germany jointly identified China as an economic challenge, advocating for an EU roadmap to protect European industries.
Austrian Chancellor Christian Stocker has emphasized the necessity of a strategic reorientation for the European Union. While current responses to China’s industrial planning often focus on market distortions, subsidies, and overcapacity, critics argue these measures ignore the deeper, structural issues tied to the Chinese government's authoritarian model. Human rights abuses, including state-imposed forced labor, labor transfers of Uyghur workers, the banning of independent unions, and coerced relocations, are deeply intertwined with key industries such as electric batteries, renewable energy supply chains, and technology.
For years, European governments have effectively turned a blind eye to these violations to maintain market access for strategic sectors, including automotive and critical raw materials. However, the environment for foreign companies is becoming increasingly hostile. Beijing is now utilizing extraterritorial measures to target foreign staff and companies, while implementing new decrees that restrict data transfers and prevent businesses from conducting supply chain transparency audits. These coercive practices are essentially externalizing the Chinese Communist Party’s logic into the operational sphere of European firms.
To address these challenges, the European Union is being urged to move beyond standard trade defense tools like anti-dumping or anti-subsidy duties. Proposed solutions include strengthening the EU regulation on products made with forced labor, specifically by allowing region-wide bans for goods produced through state-imposed labor transfers in Xinjiang. By robustly enforcing legislation such as the Corporate Sustainability Due Diligence Directive, the EU could compel both Chinese and European companies to adhere to higher human rights standards.
Furthermore, experts suggest that the EU should invoke labor protections found in International Labor Organization conventions and existing trade agreements. By harmonizing policies, European nations can better resist potential retaliation from Beijing and foster a trade ecosystem that is more aligned with fundamental human rights, ensuring that repression is no longer isolated from broader European interests.
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