European Commission Rethinks China Trade After €359.9 Billion Deficit as Tensions Push Toward New Curbs
Updated
Updated · Euronews · May 29
European Commission Rethinks China Trade After €359.9 Billion Deficit as Tensions Push Toward New Curbs
2 articles · Updated · Euronews · May 29
Brussels said after a Friday orientation debate that its trade and investment relationship with China is "not sustainable," marking a sharper Commission stance while keeping to de-risking rather than decoupling.
A record €359.9 billion EU trade deficit with China last year, alongside 200,000 industrial jobs lost since 2024 and projected car-sector losses, has intensified pressure for faster protection against subsidized imports.
The Commission is already escalating enforcement, including a €200 million fine on Temu, an investigation into JD.com's MediaMarkt deal, EV duties and broader plans that could tighten rules on batteries, steel, chips and Chinese telecom gear.
China has warned of retaliation if Brussels closes its market further; after the EU's 2024 EV tariffs, Beijing hit EU pork, brandy and dairy, and in 2025 it blocked rare-earth and chip exports vital to European industry.
The rethink now heads toward an EU leaders' economic security discussion on June 18-19, but Germany and Spain remain cautious, underscoring how internal divisions could limit any tougher China policy.
Is the EU’s 'de-risking' policy a path to security or an inevitable collision course with Beijing?
As the EU shields its industry, is it unintentionally delaying its own green energy transition?
The trade imbalance between the European Union and China has reached an unprecedented scale, with the deficit significantly widening in recent years. In 2025, the EU's goods exports to China amounted to €199.6 billion, while imports from China soared to €559.4 billion, resulting in a substantial trade deficit of €359.8 billion for the EU. This reflects a concerning trend, as EU exports to China decreased by 6.5% compared to 2024, while imports from China increased by 6.4%. The growing deficit highlights the urgent need for the EU to address its economic relationship with China.