Key facts
- The EU's trade deficit in goods with China reached €360.6 billion in 2025.
- The deficit has expanded by 10% in the first four months of this year.
- EU leaders are converging on the need for a tougher trade strategy and are debating new measures.
- Potential measures include diversification of supplies and bolstering EU trade defences, possibly with additional duties or quotas.
- 18 of the EU's 21 new anti-dumping and anti-subsidy investigations target Chinese producers.
European Union leaders are set to discuss new and tougher measures to address the bloc's widening trade deficit with China, which reached €360.6 billion in 2025 and has seen a 10% expansion in the first four months of this year. This growing imbalance, coupled with China's dominance in critical mineral processing and export restrictions on rare earths, is prompting EU member states to seek greater diversification and bolster trade defenses. While there is a general consensus on the problem, divisions exist among member states regarding the response, with countries like France pushing for a more assertive approach, potentially including measures similar to U.S. Section 301 tariffs, while Germany and Spain favor a more cautious stance. The European Commission, responsible for trade policy, will seek guidance from leaders to find a compromise, as the EU reviews its trade defense mechanisms and considers new ways to tackle overcapacity and overreliance on single suppliers like China.