Brussels is open to developing a powerful new trade weapon that could contain a kill switch that would quickly eject Chinese companies from the EU market, the bloc’s national leaders were told during a top-level meeting in the Belgian capital on Thursday. There was broad support among the 27 members for such a tool, first laid out in a French-German joint paper last week, with European Commission President Ursula von der Leyen signalling that her trade team could get to work on developing it,...

The EU’s surprise deal with China on hybrid cars last week was supposed to ease the pressure on Beijing. Instead, Brussels is preparing to intensify its crackdown on Chinese trade practices, emboldened by the discovery that its threats are finally delivering results. Now, those driving trade policy for the bloc believe they have landed on a two-track formula. Intensive dialogue is seen to have yielded results and will continue. But so too will the European Union’s efforts to counter what they...