EU intensifies trade defenses as China trade deficit hits 1 billion euros daily

The European Union is intensifying commercial defense measures against China as the trade deficit expands to approximately 1 billion euros per day. This imbalance is placing severe pressure on key sectors, including automotive manufacturing and the chemical industry. European Commission President Ursula von der Leyen described the deficit as having reached a “turning point,” prompting the EU to utilize all available tools to restore balance.

The European Commission is currently conducting 49 anti-dumping and anti-subsidy proceedings against Beijing, with 32 of those initiated this year. The automotive sector has seen a dramatic shift; while the EU-China vehicle export ratio was 1:1 in 2022, the market now sees 16 Chinese vehicles imported for every one passenger vehicle exported from the EU.

In Germany, industrial federations are calling for a more decisive policy from the government and the EU. They advocate for reducing strategic dependencies and diversifying supply chains to mitigate vulnerabilities, while cautioning against a complete economic decoupling from the Chinese market. This shift comes as Chinese companies become increasingly competitive in high-value sectors such as electric vehicles, batteries, solar panels, and industrial machinery.