EU sets early October deadline as China trade deficit hits €360.6 billion

  • EU seeks initial Chinese measures addressing the bilateral trade imbalance by early October.
  • €360.6 billion was China’s 2025 surplus with the EU, up 15% year-on-year.
  • Šefčovič plans a September 18 meeting with European CEOs on supply-chain diversification.

The European Union is seeking initial Chinese measures by early October to address a bilateral trade imbalance that reached €360.6 billion ($419.4 billion) in 2025, up 15% from the previous year and another 9% in the first half of 2026. Commissioner Maroš Šefčovič plans to pursue concrete results during a visit to China early next month, building on the China-EU Trade and Investment Dialogue Mechanism launched on June 29. EU priorities include China’s mass exports, market access for European products and export controls affecting rare earths and legacy semiconductors. The EU says rising Chinese shipments of textiles, chemicals, plastics, machinery, batteries, electric vehicles and hybrids reflect overcapacity, while China rejects that characterization as protectionist pressure and says the imbalance is being exaggerated. Separately, Šefčovič plans to meet European chief executives on September 18 to gather views on a proposed diversification tool that would encourage companies to maintain at least three suppliers for critical imports where alternatives exist. Analysts say both sides have an incentive to avoid a full-scale trade conflict, but the substance of China’s initial measures and the product categories covered remain unresolved.

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