European Union shifts to negotiation phase in China trade policy

The European Union is transitioning its strategy toward China from a focus on reducing dependencies to a phase of active negotiation. Brussels is seeking measurable improvements in trade flows, market access, and the reliability of critical material supplies, with a target for concrete results by October. Failure to reach these terms may prompt the EU to implement harsher measures.

Trade imbalances remain a central tension. EU Commission President Ursula von der Leyen has characterized the current deficit—estimated at approximately €1 billion per day—as a ‘second China shock.’ While major powers like Germany and France advocate for more aggressive measures to protect the EU market from subsidized Chinese competitors, individual member states are taking divergent paths.

Spain, for instance, has pursued a policy of ‘realpolitik,’ prioritizing national economic gain through increased Chinese investment and trade. This approach has drawn criticism from allies who favor a more unified, restrictive European stance, particularly regarding China’s perceived economic and technological support for Russia.