US Media: Europe Aims to Balance Trade with China, Yet Cannot Do Without Chinese Air Conditioners
The EU hopes to narrow its record-high trade deficit with China before October, but as Europe faces historic heatwaves, citizens are rushing to buy Chinese-made air conditioners, highlighting the difficulty Brussels faces in addressing trade imbalances.
Recently, China and Europe issued a rare joint statement indicating that disputes over trade imbalance, export controls, and intellectual property must yield "concrete results" by October, and a bilateral working group will be established to monitor trade flows. China also made assurances that its existing export controls on rare earths and permanent magnet materials will not disrupt EU supply chains. Schefcovic pointed out that China's exports to Europe continue to grow, while European market share in China keeps shrinking—a trend that is "unsustainable."
Data shows that last year, the EU’s goods trade deficit with China increased by 15% year-on-year, reaching €360 billion (approximately $41 billion). All 27 member states recorded deficits, and the first quarter of this year saw the deficit widen further to €98 billion—the highest since 2022. Meanwhile, reports indicate that Midea Group’s split-type air conditioners designed specifically for the European market have already surpassed 200,000 orders this year—double the volume from the same period last year—thanks to their ability to bypass building aesthetic regulations and refrigerant capacity limits in multiple countries.
Currently, household air conditioner penetration in Europe is around 20%, far below the nearly 90% level in the United States. Three Chinese companies—Haier, Gree, and Midea—already account for approximately 32% of the European market.
Analysts believe China has not made substantial commitments regarding specific import quotas or implementation mechanisms. The EU remains caught between encouraging consumers to buy affordable Chinese goods and protecting its own strategic industries. The European Commission stated that "maintaining the status quo is not an option," but many believe the likelihood of a full-scale tariff war breaking out in the short term is low.
Original article: toutiao.com/article/1869594632438924/
Disclaimer: This article reflects the personal views of the author.