The European Parliament approved a report which highlights the need to act together to tackle unfair competition from China and restore balanced trade. At the same time, MEPs call for the creation of a body to monitor China's investment in EU firms and purchases of European sovereign debt.

MEPs approved in plenary session a report which asks to the European countries to act together to tackle unfair competition from China with the aim at restoring balanced trade. In addition, the report points to China's mammoth trade surplus (€168.8 billion in 2010) and the problems faced by EU businesses that want to export to China or invest there, particularly in banking, insurance and telecommunications.

On the other hand, the report stresses the unfair competitive advantages enjoyed by China, a member of the WTO, by flouting WTO rules and providing unfair state subsidies and export credits for its firms. MEPs call on the European Commission for measures to ensure reciprocity with regard to public procurement. In July 2011, the EU won the case about China's export restrictions on raw materials. China is currently barring EU firms from government contracts even though the EU guarantees access to its own public procurement market for Chinese companies.

The report also highlights the need to create an EU monitoring body, similar to the review board in the US. According to MEPs, it would provide a coordinated, advance evaluation of foreign strategic investment. They also want the European Central Bank to work with member states to identify sovereign-debt holders in the eurozone.