The European Union will use all available tools to reduce what European Commission President Ursula von der Leyen called an unsustainable trade deficit with China. The goods deficit reached €1 billion ($1.15 billion) a day last year, which she said marked a tipping point as Europe faced a second China shock through deindustrialisation. EU leaders asked the European Commission in June to deliver results from dialogue with China and ensure the bloc had instruments to defend its interests. European Trade Commissioner Maros Sefcovic, who is leading the talks, wants tangible results by October. Von der Leyen said cooperation remained in both sides' interests, while also urging the EU to reduce its reliance on China for critical minerals, particularly rare earths. The bloc plans to establish a European Corporation on critical raw materials to help its 27 member states obtain and stockpile supplies.