EU warns China of trade defence measures as deficit hits €1 billion a day

European Commission President Ursula von der Leyen has called for a rebalancing of the European Union’s trade relationship with China, warning that Brussels must be prepared to use its trade defence instruments if negotiations with Beijing fail to deliver results.

Speaking on August 27 at an event organised by Medef, the French business organisation, von der Leyen said the EU’s dialogue with China remained necessary but had to produce tangible outcomes, Caliber.Az reports via foreign media.

“Dialogue with China remains necessary. But it must produce results. And when dialogue is not enough, we must be ready to make full use of our instruments,” she said.

The remarks come as the EU’s trade deficit with China has reached around €1 billion per day, prompting the European Commission to set October as a deadline for achieving progress in efforts to rebalance bilateral trade.

According to von der Leyen, the EU has also faced a sharp increase in imports from China, with cheap Chinese goods rising by 45% over the past five years.

She noted that the European Commission had launched 30 trade defence investigations over the past year, almost three times the historical average.

“China is a key economic partner. And our approach is clear and consistent: derisking without breaking ties,” von der Leyen said. “But being a partner does not mean accepting permanent imbalances.”

Trade tensions between Brussels and Beijing have intensified in recent months. China has threatened retaliatory measures against proposed EU regulations that could restrict market access for Chinese companies, while Beijing has also moved to prevent Chinese firms from participating in EU antitrust investigations.

On August 27, von der Leyen also pointed out that all 27 EU member states now record a trade deficit with China.