21st June 2026
There is a growing debate across both the UK and the EU about whether more protection is needed for domestic industries as Chinese exports increase.
The issue is not simply that China exports a lot. It is that many Western governments argue Chinese firms benefit from:
State subsidies.
Cheap government-backed loans.
Lower energy costs.
Large-scale industrial policies.
Less stringent environmental regulations in some sectors.
This can make it difficult for manufacturers in Britain and Europe to compete on price.
What the EU is already doing
The European Commission has already introduced tariffs on Chinese electric vehicles after an investigation concluded that Chinese manufacturers were receiving unfair state support.
The EU has also:
Increased anti-dumping investigations.
Tightened rules on government procurement.
Examined Chinese investments in strategic industries.
Discussed stronger controls on imports in sectors such as steel, batteries, solar panels and wind turbine components.
The aim is not to stop trade with China but to prevent European industries being overwhelmed by heavily subsidised imports.
What the UK might do
The UK has generally been more open to free trade than the EU, but pressure is growing.
Industries that may seek protection include:
Steel.
Chemicals.
Automotive manufacturing.
Battery production.
Renewable energy equipment.
Advanced manufacturing.
The UK government could respond through:
Tariffs on specific products.
Anti-dumping duties.
"Buy British" procurement policies.
Subsidies for domestic manufacturers.
Tax incentives for investment.
The dilemma
Protection sounds attractive, but it comes with costs.
Benefits
Protects jobs.
Preserves strategic industries.
Maintains domestic manufacturing capability.
Reduces dependence on imports.
Costs
Higher prices for consumers.
Possible retaliation against UK exports.
Reduced competition.
Risk of trade disputes.
This is particularly important because many UK firms export to China and rely on Chinese-made components.
The bigger picture
Many economists believe the world is moving away from the era of completely free global trade that dominated from the 1990s to the late 2010s.
Instead, governments are increasingly prioritising:
Economic security.
Supply-chain resilience.
Strategic industries.
National defence considerations.
The United States has already moved strongly in this direction through measures such as the Inflation Reduction Act and extensive tariffs on Chinese goods. The EU has followed with its own industrial support programmes.
The UK is likely to face growing pressure to choose between:
Keeping markets open to maintain low prices.
Protecting key industries and jobs.
What this means for ordinary people
If Chinese imports continue to rise rapidly, consumers may benefit from cheaper cars, electronics, solar panels and household goods. However, if domestic factories struggle to compete, there could be fewer manufacturing jobs and less investment in some regions.
That is why the political debate is shifting from "free trade versus protectionism" to a new question:
Which industries are so important that Britain and Europe should be willing to pay more to keep them at home?
This is likely to become one of the biggest economic policy debates of the late 2020s, particularly if Chinese exports continue rising while economic growth in Europe remains relatively weak.