EU leaders have agreed during talks that the bloc must develop beefed-up trade defenses to curb a surge of Chinese exports deemed an existential threat to European industry by Brussels, while simultaneously seeking "constructive dialogue" with Beijing.

Europe is increasingly arriving at the same diagnosis as Washington — that Chinese overproduction poses a threat to domestic industry.

Brussels currently lacks the firepower to win a trade clash with China – and Beijing is not in a mood to make concessions, analysts warn.