EU spends three times more on imports from China than bloc exports there
Summary
The European Union (EU) spends about three times more money on goods from China than China spends on goods from the EU, creating a large trade deficit. The gap reached over €1 billion per day in July 2026, and both sides are discussing ways to reduce this imbalance ahead of important meetings between President Donald Trump and Chinese President Xi Jinping.Key Facts
- In July 2026, the EU's trade deficit with China was €36.5 billion, up from €32.2 billion in July 2025.
- From January to July 2026, the total EU trade deficit with China reached €234 billion.
- For every €1 of goods the EU exported to China in July, it imported €3.10 from China.
- The EU Commission is considering import limits on Chinese hybrid vehicles and certain chemicals to help reduce the deficit.
- Imports of Chinese hybrid cars that don’t need to be plugged in increased from about 4,000 in October 2024 to 50,000 in July 2026.
- China temporarily stopped export restrictions on rare earth materials, which are important for car manufacturing, but the suspension is due to be reviewed soon.
- Upcoming talks are planned between EU and Chinese trade officials in October, focusing on reducing the trade imbalance peacefully.
- President Donald Trump and President Xi Jinping are set to discuss trade issues, including rare earth exports, during their Washington summit.
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