EU leaders weigh tougher measures to combat China trade imbalance

Live updates

1. 1d ago

   EU Prepares Trade Diversification Tools Amid China Imbalance

   The European Commission is shifting from warnings to implementing a new diversification instrument to address trade risks. German Chancellor Friedrich Merz is pushing for coordinated EU action and yuan revaluation. EU Trade Commissioner Maros Sefcovic will meet Chinese Commerce Minister Wang Wentao in Brussels on June 29.

   What's confirmed:

   • EU Trade Commissioner Maros Sefcovic is scheduled to host Chinese Commerce Minister Wang Wentao in Brussels on June 29.
   • The European Commission is preparing a new diversification instrument to address China-linked trade risks.

   Still unconfirmed:

   • German Chancellor Friedrich Merz is targeting a 360 billion euro trade deficit with China.
   • Weak domestic demand is the primary driver of Chinese export growth since 2020.
   • Delaying action on China's economic imbalances until 2027 is not an option.
   confidence 80%
2. 4d ago

   EU Leaders Debate Tougher Measures to Address China Trade Deficit

   European Union leaders met on June 18 to discuss new actions to curb a growing trade imbalance with China. The bloc aims to reduce its dependence on Chinese critical supplies and protect European industries. These discussions follow a record daily trade deficit.

   What's confirmed:

   • EU leaders debated new and tougher trade measures on June 18.
   • The EU trade deficit with China has reached roughly €1 billion per day.
   • The European trade deficit with China totaled €360bn in 2025.
   • EU leaders are considering ways to reduce reliance on Chinese critical supplies.

   Still unconfirmed:

   • EU diplomats claim there is a gradual convergence of views among the 27 member states.
   confidence 90%
3. 6d ago

   EU Leaders Seek New Strategies to Counter Chinese Trade Imbalance

   European leaders are preparing a new strategy to combat a surge in Chinese exports, referred to as China Shock 2.0. While there is a push for new trade tools, the EU remains cautious to avoid a full scale trade war. President von der Leyen is addressing these economic imbalances at a G7 summit in Evian.

   What's confirmed:

   • EU leaders are seeking new trade tools and strategies to address the trade imbalance with China.
   • A surge in Chinese exports, termed China Shock 2.0, is raising concerns about the European economy.
   • President von der Leyen is attending a G7 summit in Evian to discuss global economic imbalances.

   Still unconfirmed:

   • The EU is attempting to confront China without triggering a new trade war.
   • EU leaders are striving for unity regarding the China trade imbalance.
   • The EU has delayed a trade confrontation with China.
   confidence 90%