European Union leaders debate measures to address China trade deficit

The European Union’s trade relationship with China has a math problem. And the numbers are getting worse.

EU leaders gathered in Brussels on June 18-19 to debate a package of measures designed to reduce the bloc’s growing trade imbalance with China, particularly around critical raw materials like rare earths. China’s goods trade surplus with the EU hit €360.6 billion in 2025, a 15% increase compared to 2024.

To put that in perspective, the EU’s goods deficit for Q1 2026 alone stood at €98 billion.

What’s on the table in Brussels

The measures under discussion include stricter import checks, new safeguard instruments, and tools specifically designed to tackle what European officials describe as overcapacity in Chinese manufacturing.