European 301 tool against China: what we know and what we don't

FRIDAY, 2 OCTOBER 2026

France and Germany push for a trade weapon on the American model, Beijing threatens a response. No tariff is in force, but the direction is clear.

The European 301 tool does not exist yet: it is a proposal under discussion in Brussels, inspired by the US mechanism Washington uses to impose tariffs against trade practices it considers unfair. According to press reports, France and Germany are finalising a joint paper asking the Commission to speed up, and at the end of September China's commerce ministry responded by promising a firm reaction. For importers from China it is the time to understand what has been decided and what has not.

What the European 301 tool is

The name comes from Section 301 of US trade law, the tool Washington used to impose tariffs on a long list of Chinese products. According to published analyses, the European version under discussion would allow the Commission to respond to systemic distortions, such as state-backed production overcapacity, without having to prove injury sector by sector as happens today with anti-dumping measures. Sectors cited as possible targets include chemicals, machinery, semiconductors, batteries and clean technologies.

• May 2026: France, Italy, Spain, the Netherlands and Lithuania ask the Commission for tougher measures against Chinese industrial overcapacity.
• 5 June 2026: Trade Commissioner Maroš Šefčovič announces a dedicated instrument for supplier diversification.
• Late September 2026: according to the press, France and Germany finalise a joint paper for a tool modelled on Section 301.
• Late September 2026: China's commerce ministry calls the tool protectionist and announces a firm response if the EU proceeds.
• At least three suppliers in several countries: the obligation envisaged for companies in some sectors by the diversification instrument.

Two different tools, often confused

In the news of recent weeks two things overlap. The first is the tool modelled on Section 301, which concerns tariffs: it would target imports deemed the result of distortions, and for now it is only a request from some governments. The second is the diversification instrument, which concerns European companies: it would push, or oblige, them to have several suppliers in different countries for critical components.

The Commission has already committed to the second, but the details are not defined. It is unclear whether it will set binding targets, new reporting obligations or penalties, or remain non-binding guidance. The timing also varies depending on the source, between the October European Council and a presentation in December.

China's response

Beijing reacted before a text even exists. The commerce ministry called the tool an example of protectionism and unilateralism, warned that it would damage China-EU trade and the stability of supply chains, and said China would respond firmly to any discriminatory restrictions. Meanwhile dialogue continues: Šefčovič is expected in Beijing for talks with China's commerce minister.

What it means for importers

Nothing changes today: there are no new tariffs and no obligations in force. The data does not show that the tool will be adopted, or in what form, but it signals a clear direction in European trade policy, and it is worth preparing before it becomes a rule.

Three useful things to do now. Map dependence on Chinese suppliers by customs code, distinguishing products in the sectors cited, such as machinery and components, from those outside them. Identify, for the most exposed items, at least one alternative supplier already qualified, even if not used right away: building one in an emergency costs far more. And reread supply contracts and delivery terms, because a tariff introduced during an order falls on whoever pays for customs clearance.

Between pressure and negotiation

The proposal can also be read as a pressure tool in negotiations with Beijing, rather than a decision already taken. For those buying in China the practical consequence is the same: a period of uncertainty in which rules can change at short notice, and in which flexibility in supply is worth more than a few points of discount.

With La Merce, those importing machinery or components from China, the sectors cited for the European 301 tool, already have a second qualified supplier in another country before a new rule makes it mandatory.

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