EU Seeks Trade Deals to Curb Chinese Imports

European Union ministers are pursuing agreements with Beijing to curb imports of chemicals, machinery, and pharmaceuticals. The bloc is attempting to address a goods trade deficit that reached over €370 billion in 2025 and is projected to exceed €400 billion this year, a figure President of the European Commission Ursula von der Leyen described as "unsustainable."

European Trade Commissioner Maroš Šefčovič recently secured an agreement with China to reduce hybrid vehicle imports by more than half to protect European carmakers. These efforts follow warnings from industry leaders regarding "China Shock 2.0," a surge of state-subsidized Chinese goods that has led to factory closures and significant job losses, including 100,000 positions at Volkswagen Group.

While the Government of China has denied causing these economic issues, EU officials suggest that a unified front is improving negotiations. France's junior minister for trade Nicolas Forissier argued that dialogue is now possible because the EU is speaking as one, while Irish Foreign Minister Helen McEntee indicated that current discussions could serve as a stepping stone to address imbalances in additional industrial sectors.