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EU weighs tougher China trade steps as deficit widens

Makkler Newsroom
October 14, 2026 · Based on reporting by Ekonomim

France and Germany are backing stronger trade measures as EU leaders consider how to respond to a widening imbalance with China.

Key takeaways

  • The EU’s goods trade deficit with China reached €360 billion in 2025.
  • France and Germany proposed stronger measures to protect the European market.
  • The European Commission is expected to present an initial measure in December.

European Union leaders are meeting in Brussels to discuss trade with China and ways to protect European industry. The EU’s goods trade deficit with China reached €360 billion in 2025 and €200 billion in the first half of 2026.

European Commission President Ursula von der Leyen said the situation was unsustainable and that the bloc would use the tools needed to reduce the deficit. The EU’s approach is now considering limits on sales from China, alongside efforts to improve European companies’ access to its market.

France and Germany have proposed stronger trade measures, including possible steps on chemical products and PET plastic imports. They also called for reducing reliance on single suppliers for critical goods and faster responses to countries acting against EU interests.

The joint stance marks a shift for Germany, which opposed planned tariffs on electric cars made in China two years ago. European Reform Center chief economist Sander Tordoir said the countries’ alignment on China was significant.

The European Commission is expected to put forward an initial measure in December. EU leaders are expected to support continued talks with Beijing, but further trade steps may remain under consideration.

Topics
European UnionChinaFranceGermanyVolkswagen
Further reading

This article was produced with the help of AI technology. Based on reporting by the outlets listed above.

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