European political and business leaders are calling for tougher action against China, raising the risk of a wider trade dispute between two of the world’s largest economies.
European Commission President Ursula von der Leyen said Brussels would use all available tools to reduce its “unsustainable” trade imbalance with Beijing. The EU’s trade deficit with China reached around €1 billion per day last year, Reuters reported.
Pressure Is Growing Across Europe
German Chancellor Friedrich Merz has supported tougher measures against what European leaders describe as unfair Chinese trade practices.
Business leaders are also demanding action. Ørsted CEO Rasmus Errboe called on the EU to provide stronger support for European companies competing with heavily subsidised Chinese rivals, according to the Financial Times.
Brussels is already investigating Chinese wind turbine manufacturer Goldwind over possible foreign subsidies. Chinese companies supplied less than 3% of Europe’s new wind capacity in 2025, but European manufacturers fear their market share could grow quickly.
October Could Be Decisive
The EU’s goods trade deficit with China reached €103 billion in the second quarter of 2026, its highest level since late 2022, according to Eurostat.
Brussels expects progress from negotiations with Beijing by October. If talks fail, the EU could respond with new tariffs, subsidy investigations or restrictions on Chinese companies.
Europe still wants to avoid a trade war, but patience is running out. The October talks could decide whether both sides reach a compromise or move closer to retaliation.
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