Brussels is rallying support among EU industry groups for a trade weapon to tackle Chinese overcapacity, as the European Commission races to propose a sweeping new tool this summer.

While the contours of the new instrument remain a closely guarded secret, it is expected to be presented to Commission President Ursula von der Leyen on May 29, at a rescheduled debate on China among all 27 commissioners of the bloc’s executive branch.

The South China Morning Post previously reported that the instrument – along with other potential tools to be used against China – was to be pitched at the original date for the debate in April.However, that was postponed with commissioners focused instead on how the US-Israel war on Iran would affect EU energy prices.

Now, sources within several business groups said they had been approached by Brussels to gauge whether they would welcome such a tool and what they believe it should look like.

European Commission President Ursula von der Leyen. Photo: EPA

While constituent member businesses are being polled on their views, the groups said the commission was giving little away on the detail of an instrument it wants to propose before its long August break.