Key facts
- The EU's trade deficit in goods with China hit €360 billion last year.
- This deficit is continuing to expand.
- The EU is seeking a more stringent policy towards China.
- Neither side is prepared for a major conflict.
The trade imbalance between the European Union and China in goods has reached a significant €360 billion over the past year and shows signs of further expansion. In response, Brussels is signaling a desire to adopt a more assertive policy toward Beijing. However, the current geopolitical and economic climate suggests that neither the EU nor China is prepared for a full-scale confrontation over trade issues.