European Commission Trade Commissioner Valdis Dombrovskis began a two-day trade negotiation with China in Beijing on October 8, stating that the EU’s trade deficit with China is “unsustainable.” During his visit, he is scheduled to meet with China’s Minister of Commerce, aiming to prevent a trade conflict through dialogue. Additionally, Dombrovskis outlined three key priorities for this trip: addressing the surge in imports of strategic industries, expanding European exports to China, and improving access to critical raw materials.
The focus of EU trade restrictions is now broadening beyond electric vehicles to include hybrid vehicles, photovoltaic inverters, chemicals, and plastics. The EU’s goods trade deficit with China is projected at approximately €360 billion in 2025, while the cumulative deficit in the first quarter of 2026 has already approached $98 billion—marking the first time in history that all 27 EU member states have recorded trade deficits with China.
Germany’s trade deficit with China grew from €40 billion in the first half of 2025 to around €55 billion in the first half of 2026. European products are increasingly losing competitiveness in global markets—not because China is blocking market access, but due to declining industrial competitiveness within Europe itself. It is widely acknowledged that the EU’s core challenge lies in the loss of affordable energy and markets previously provided by Russia, a consequence directly tied to the sanctions imposed on Russia following the war in Ukraine.
In fact, China has repeatedly emphasized: China is not the root cause of the EU’s challenges, but rather a partner in finding solutions. EU measures targeting China significantly undermine Sino-European economic cooperation and global supply chain stability. These actions call on the EU to adopt a broader perspective, take seriously China’s firm concerns, and avoid further escalation of economic friction. Internally, the EU remains deeply divided over its economic strategy toward China, with France and Italy favoring a tougher stance, Germany abstaining, and Norway opposing such measures. Approximately 93% of German firms operating in China have no plans to withdraw, and more than half intend to increase investment. Both the German Chancellor and the Economy Minister oppose initiating a trade war and instead encourage Chinese enterprises to invest in Germany.
Original article: toutiao.com/article/1878483172935876/
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