EU gets tough on China as trade imbalance stokes deindustrialisation fears
Summary
The European Union held talks with China to address concerns about the growing trade imbalance and its effects on European industries. EU leaders worry that the rise in Chinese exports and dominance in key sectors is harming European companies, leading to job cuts and economic challenges.Key Facts
- The EU’s trade commissioner met with China’s commerce minister in Brussels to discuss trade issues.
- China’s trade surplus with the EU reached 360.6 billion euros ($411 billion) in 2025, growing by 15% from the previous year.
- Chinese companies are strong competitors in Europe in areas like solar panels, rare earths, chemicals, industrial robots, and electric vehicles.
- Chinese electric vehicle sales in Europe passed 10% of total auto sales for the first time in May 2025.
- Major European automakers like Volkswagen, BMW, and Mercedes-Benz are cutting jobs and facing financial challenges due to Chinese competition.
- EU tariffs on Chinese electric vehicles have not slowed their growth in the European market.
- The EU is considering policies to protect its domestic industries amid concerns about China’s market practices.
- China has denied encouraging excess production and warned it might retaliate if the EU acts against the trade imbalance.
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