The European Union is planning to use safeguard measures to cut imports of products from sectors including chemicals, furniture and machinery from China, according to people familiar with the matter.

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Limited market access in China for many European goods, has led to a massive trade deficit of more than $1 billion a day

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The commission is planning to present proposals before mid-December for a tool to diversify supplies as well as an instrument to rapidly react to any aggressive trade actions. A new instrument would do that by cutting access to the bloc’s single market for select goods and services in ways that are more agile and broader than current options allow.

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