Bruegel Think Tank Analyzes EU-China Trade Tensions Amid Record Deficit
The EU-China trade deficit has reached a record EUR1 billion per day, prompting European leaders to seek a rebalancing of economic relations. Tensions have escalated as the EU targets Chinese companies over illegal products and subsidies, leading to threats of retaliation from Beijing. European Trade Commissioner Maros Sefcovic met with Chinese Commerce Minister Wang Wentao to stabilize the relationship, setting an October deadline for tangible results. Analysts suggest that rebalancing the deep economic ties is complex due to structural factors, with China's economy being export-driven and heavily subsidized. The EU's trade deficit with China doubled from EUR182 billion in 2020 to EUR360 billion in 2025, with no member state running a trade surplus with China. 
