The EU tightens the noose around Chinese imports + Ukraine hits Russian manufacturing infrastructure

The EU has reached a provisional agreement to ban products made with forced labor that may spur tensions with China, The Financial Times reports. Under the agreement, the EU will monitor reports of forced labor around the world, seizing and destroying products that are in breach, the news outlet writes. The agreement requires approval from member states and the European parliament before coming into effect. The EU has recently ramped up efforts to block Chinese exports, resulting in the bloc’s trade deficit with China hitting record levels, the FT added.

The EU is cracking down on Chinese imports already: The EU Commission is set to kick off registrations of Chinese EV imports today as a possible precursor to retroactive tariffs if trade investigations find unfair benefits from existing subsidies, Reuters reports. The ongoing investigation has so far uncovered evidence that Chinese EV exports are benefiting from subsidies and that imports had ramped up 14% y-o-y since the probe got underway in October, the newswire said citing a document published on Tuesday. Although the probe is set to continue until November, the EU could slap tariffs on Chinese EV imports as early as July, the newswire said.

Two Ukrainian drones hit fuel facilities at Russia’s Mikhailovsky GOK iron ore plant, one of the country’s largest iron ore facilities, resulting in a fire at fuel facilities, Reuters reports, citing Russian official sources and the plant’s owner. Ukraine has taken responsibility for the attack, the newswire said, citing Ukrainian military sources. Ukraine and Russia have exchanged attacks against economic infrastructure, with Wednesday seeing Russia attack Ukraine with 42 drones, the newswire said citing Ukrainian officials.

ICYMI- Two Ukrainian-launched drones hit Russia’s Volgograd oil refinery, the largest plant in the country’s south, early last month. The attacks caused a fire to break out, but operations at the refinery have resumed.