German Chancellor Friedrich Merz told parliament that the European Union must strengthen its trade tool kit to counter competitive distortions and shore up European security, signaling support for tougher trade measures ahead of the June 18-19 EU summit, though he stopped short of naming China explicitly, Bloomberg reported on June 11. Separately, China abruptly canceled two ministerial-level diplomatic meetings with the European Union without explanation, widely read as a signal of Beijing's displeasure, the Financial Times reported on June 11.

Mounting pressure from EU member states — led by France — to address Chinese overcapacity and subsidized exports flooding European markets, compounded by Beijing's restrictions on critical material exports, is hardening the bloc's trade stance, with the European Commission's May 29 China policy review concluding the current trade and investment relationship is unsustainable. Trade Commissioner Maros Sefcovic confirmed on June 5 that Brussels is weighing a dedicated instrument requiring companies in high-risk sectors to diversify sourcing away from single suppliers to at least three. EU leaders gathering for the June 18-19 European Council summit are expected to provide guidance on which trade defense tools the commission should prioritize.