The European Union's trade deficit with China has reached a record high of approximately €1 billion per day, according to new data from Eurostat. The deficit has widened sharply as imports of Chinese goods surged while European exports to China remained sluggish.
Record imbalance
In the first quarter of 2026, the EU's trade deficit with China averaged €91.5 billion per month, equating to over €1 billion daily. This marks a significant increase from the previous year, when the monthly deficit was around €70 billion. The data highlights the growing imbalance in trade between the two economic powerhouses.
Drivers of the deficit
The main factors behind the widening deficit include a surge in Chinese exports of electronics, machinery, and consumer goods to the EU. Meanwhile, European exports to China have been hampered by weak demand in the Chinese economy and ongoing trade restrictions. Key European exports such as automobiles, luxury goods, and industrial equipment have seen limited growth.
Impact on European industries
The record deficit has raised concerns among European policymakers and industry groups. Some sectors, particularly manufacturing, have faced increased competition from Chinese imports. The European Commission has been urged to take measures to address the imbalance, including potential tariffs or trade negotiations.
Reactions from Brussels
European Trade Commissioner Valdis Dombrovskis stated that the EU is closely monitoring the situation and is committed to ensuring a level playing field. He emphasized the need for reciprocal market access and fair competition. The EU has also been exploring ways to reduce dependency on Chinese imports, particularly in critical sectors such as semiconductors and green energy technologies.
Future outlook
Economists predict that the deficit may continue to grow in the short term, as Chinese exports remain competitive and European demand for Chinese goods stays strong. However, long-term trends could shift if the EU successfully diversifies its supply chains and boosts domestic production. Trade negotiations between the EU and China are expected to intensify in the coming months.
