The European Union is exploring ways to reduce its trade deficit with China by extending restrictions beyond the automotive sector.
What happened
EU trade ministers met to discuss potential measures with other industries, including chemicals and machinery. The EU's trade deficit with China reached 359.8 billion euros in 2025, with imports from China rising by 6.4 percent and European exports to China falling by 6.5 percent.
The European Commission has already reached an understanding with China to limit hybrid-vehicle exports to Europe, but officials say this is just a starting point. Polish Deputy Minister of Economic Development and Technology Michał Baranowski stated that the arrangement would not resolve the bloc's roughly 1 billion euro daily trade deficit with China.
The EU is considering additional industries for negotiations with Beijing, with European Commission President Ursula von der Leyen identifying chemicals and machinery as sectors where the commission is working with European businesses over import concerns. The discussions follow an European Council decision calling for continued negotiations and the development of additional measures to address global economic imbalances.
