Brussels, 5 October, (Brussels Morning Newspaper) – EU-China trade tensions have returned to the centre of the European Union’s economic agenda as Brussels faces growing pressure over a widening goods deficit with China, increased import competition and demands for stronger European trade defences.
The latest official figures underline the scale of the challenge. Eurostat reported that the EU’s goods deficit with China reached €103 billion in the second quarter of 2026, its highest quarterly level since the third quarter of 2022. China remains the EU’s leading source of imported goods.
Brussels Faces Growing Pressure Over Chinese Imports
Concerns are no longer confined to electric vehicles. Denis Redonnet, the European Commission’s chief trade enforcement officer, told the European Parliament’s international trade committee that sustained import increases were affecting machinery, textiles, basic metals and chemicals.
The Commission says the EU’s goods deficit with China reached €359.9 billion in 2025. EU exports to China were worth €199.5 billion, while imports totalled €559.5 billion. Brussels has made greater reciprocity, improved market access and a more level playing field central objectives of its China policy.
Pressure for further action intensified on Monday as France and Germany proposed a new rapid-response EU trade instrument designed to allow the bloc to react more quickly when third countries cause economic harm. The proposal does not formally target a specific country, but comes amid mounting European concern over global trade practices and economic dependencies.
China Warns Against Tougher EU Trade Measures
Beijing has pushed back against proposals for stronger European measures.
China’s Commerce Ministry warned that it would respond if the EU introduced restrictions targeting Chinese products or companies, arguing that unilateral measures could undermine bilateral trade relations and disrupt international supply chains.
The warnings add another layer to EU-China trade tensions at a sensitive point in negotiations between the two sides.
EU Trade and Economic Security Commissioner Maroš Šefčovič has been pressing Beijing for tangible progress. Following EU-China talks in June, he said the two sides had agreed to establish a joint mechanism for monitoring trade flows and work across four areas: trade and investment balancing, export controls, intellectual property rights and World Trade Organization reform.
Šefčovič said at the time that the growing trade deficit was “clearly not sustainable” over the medium to long term.
Electric Vehicles Remain a Major Trade Flashpoint
Electric vehicles remain one of the most visible disputes.
The Commission imposed definitive countervailing duties of between 7.8% and 35.3% on Chinese-made battery electric vehicles in October 2024 following its anti-subsidy investigation. Brussels and Beijing have nevertheless continued discussing WTO-compatible alternatives, including minimum-price arrangements.
In February 2026, the Commission accepted a price undertaking covering Volkswagen Anhui’s CUPRA Tavascan, allowing the model to avoid the additional duties provided it complies with a minimum import price, volume limits and investment commitments.
Trade defence action has extended beyond cars. In July, the Commission imposed definitive anti-dumping duties ranging from 4.3% to 45.3% on Chinese passenger-car and light-lorry tyres after finding that dumped imports were injuring European producers.
Why the Trade Dispute Matters for Europe
The dispute reaches beyond individual tariffs. European policymakers are increasingly concerned about industrial competitiveness, manufacturing employment, strategic dependencies and Europe’s ability to respond to distortions in global markets.
France and Germany have called for systematic use of existing EU instruments alongside stronger trade-defence and economic-security tools designed to reduce dependencies in critical sectors.
That approach could shape how Brussels manages EU-China trade tensions while attempting to preserve one of the world’s most important economic relationships.
What Happens Next?
Attention now turns to Beijing. Šefčovič is expected to visit China on 8 and 9 October, after EU and Chinese officials spent recent months working towards tangible progress on trade rebalancing and other longstanding disputes.
The talks will provide an early test of whether dialogue can deliver meaningful progress on market access, trade flows and export restrictions — or whether political pressure inside Europe produces a tougher phase in EU trade policy towards China.
