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flag France warns China’s cheap exports threaten EU manufacturing, urging tariffs or currency shift, sparking trade tensions.

flag A French government report released on February 11, 2026, warns that China’s industrial expansion is threatening Europe’s manufacturing base, with Chinese goods 30%–40% cheaper and capturing key markets. flag The report urges the EU to consider a 30% tariff on Chinese imports or a 30% euro depreciation to counter the threat, citing risks to auto, battery, and other industries. flag China has responded by warning it may investigate French wine imports or impose retaliatory tariffs, calling the proposal protectionist and inconsistent with WTO rules. flag Tensions are rising, but both sides face pressure from U.S. trade policies, creating a fragile balance amid growing economic friction.

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