New Delhi, Aug. 10 -- The European Union (EU) is headed for a trade war with China. Alarm bells have been ringing in Brussels for a while now, and the 27-member bloc is putting in place aggressive measures to defend itself against dumping, overcapacity and supply-chain dependencies created by China, Europe's biggest source of imports.

Those measures come in the wake of the EU-China trade deficit reaching a massive €360 billion in 2025. EU exports to China totalled €199.5 billion, down 6.5% year-on-year, while imports stood at €559.5 billion, up 6.4%. The EU Trade Department has termed the relationship with China as "critically unbalanced" and blamed China's economic model for "systemic distortions."

European Trade Comm...