EU Trade Deficit With China Hits €1bn Daily as Imports Surge 2026

The EU trade deficit with China has widened dramatically, with new data revealing that the bloc spends three times more on Chinese imports than it exports to China. According to a study by the Mercator Institute for China Studies (Meric), the gap between the EU's imports from China and exports to China exceeded €1bn per day in July, underscoring a deepening economic imbalance.

EU-China Trade Deficit Hits Record High

Customs data shows the EU's trade deficit with China reached €36.5bn in July alone, up from €32.2bn in July 2025. From January to July, the cumulative deficit stands at €234bn, approximately €21bn more than the same period last year. This means the EU now imports over three times as much from China as it exports there.

Meric analysts noted: "The problem is no longer simply that the EU is buying more Chinese goods. China is selling more to Europe while buying less from it." The imbalance has become a central concern for EU policymakers, especially as China's domestic demand for European goods appears to be weakening.

Why the Trade Gap Is Widening

Several factors contribute to the growing EU trade deficit with China. China's economic slowdown has reduced its appetite for European luxury goods, machinery, and vehicles. Meanwhile, EU consumers and businesses continue to rely on Chinese electronics, textiles, and industrial components. Additionally, China's industrial policies and subsidies have made its exports more competitive, while trade barriers limit EU access to Chinese markets.

Key Takeaways

• EU trade deficit with China exceeded €1bn per day in July.
• Cumulative deficit for January-July reached €234bn, up €21bn year-on-year.
• The imbalance now exceeds a 3:1 ratio of imports to exports.
• EU-China talks in October will likely focus on addressing the deficit.

EU-China Trade Data at a Glance

Political Response and Upcoming Talks

EU Commission President Ursula von der Leyen recently stated that the trade imbalance must be arrested. The issue is expected to be high on the agenda at the EU-China summit in October, where EU trade commissioner Maroš Šefčovič will meet his Chinese counterpart. The talks aim to avert a full-blown trade war, but tensions are rising.

Meric concluded: "With the bilateral deficit now exceeding €1bn a day, the widening imbalance will almost certainly be high on the agenda at the planned EU-China meeting in October." The outcome of these discussions could reshape EU-China economic relations for years to come.

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