Europe gears up for its China counterpunch

The European Union is intensifying efforts to shield its industries from Chinese market saturation, specifically addressing a nearly 1 billion euro daily trade deficit. Officials are weighing the use of the "trade bazooka"—the anti-coercion instrument—to counter state-subsidized Chinese goods, though concerns persist regarding the potential for a full-scale trade war. Simultaneously, defense ministers are convening in Ireland to address Ukraine’s urgent need for air defense systems and financial support, with discussions centering on the potential front-loading of a 90 billion euro loan. Meanwhile, the right-wing think tank MCC Brussels faces an uncertain future following the withdrawal of Hungarian government funding, prompting its leadership to seek alternative financial streams while maintaining its focus on nationalist and anti-federalist advocacy. These developments highlight the EU's shifting geopolitical and economic priorities as it navigates internal divisions and external pressures.