Key facts
- EU's trade deficit with China has reached a 'tipping point,' according to European Commission President Ursula von der Leyen.
- The trade deficit amounts to €1 billion per day.
- Von der Leyen stated the situation is contributing to de-industrialization in Europe.
- The EU plans to use 'all tools at our disposal to rebalance our relationship' with China.
- Brussels is preparing for an October summit of EU leaders to discuss trade defense instruments.
European Commission President Ursula von der Leyen is set to deliver a stark warning about the EU's ballooning trade deficit with China, describing it as having reached a "tipping point" of €1 billion per day. In prepared remarks for her State of the Union speech on Wednesday, von der Leyen will articulate concerns that the deficit is contributing to de-industrialization across Europe. She plans to signal that the EU will employ a range of measures to rebalance the trade relationship, emphasizing that while dialogue with China is ongoing, concrete results are now expected.