EU can't put up these trade barriers because they need to keep interest rates below 3% and this would definitely get them above that.
The weird line of thinking is that "we should try to nudge Chinese to make right decisions". Why? We want to survive or not? We should try to nudge them to make wrong decisions, and when they already do, we should do nothing about it.
Massive green energy subsidies? What's the problem? Grab everything that they dump. Store for later it if we can't integrate.