The European Union is bleeding roughly €1 billion per day to China in trade deficits, and the bloc’s leaders are gathering for a summit that may determine whether they actually do something about it or just talk about it some more.
EU leaders are set to convene on June 18-19 for a summit where the trade imbalance with China will be a central, if politically delicate, topic. The European Commission declared the current trade relationship “not sustainable” following a meeting of commissioners on May 29, setting the stage for what could be the most consequential shift in EU-China economic relations in years.
The numbers tell a brutal story
The EU’s goods trade deficit with China reached €360 billion in 2025. In early 2026, that deficit accelerated to approximately €1 billion per day.
The Commission’s response has been to propose new mechanisms that would limit China’s access to EU markets in critical sectors. Chemicals, metals, and clean energy technologies are the primary targets. The proposals also include strategies to diversify supply chains away from Chinese suppliers.
