Consumers and businesses in the EU are spending three times more on Chinese imports than their counterparts in China are buying from the bloc, a study has shown. Customs data showed that the gap between the EU’s imports from China and its exports to China—the trade deficit—was running at more than €1bn (£860m) a day in July.
The new data comes just days after the European Commission president, Ursula von der Leyen, said the trade imbalance must be stopped, and before Xi Jinping’s summit with Donald Trump on Thursday in Washington.
The Mercator Institute for China Studies (Meric) said: “The problem is no longer simply that the EU is buying more Chinese goods. China is selling more to Europe while buying less from it.”
China and the EU are in talks to avert a trade war, and the EU’s trade commissioner, Maroš Šefčovič, will travel to Beijing to meet his Chinese counterpart on 8 October.
“With the bilateral deficit now exceeding €1bn a day, the widening imbalance will almost certainly be high on the agenda at the planned EU-China meeting in October,” Meric said.
Analysis of Chinese customs data by Meric showed the EU’s trade deficit hit €36.5bn in July alone, up from €32.2bn in July 2025. From January to July, the total deficit now stands at €234bn, about €21bn more than in the first seven months of 2025.
“The imbalance has now moved beyond three to one. For every €1 of goods the EU exported to China in July, it imported €3.10. The deficit was equivalent to €1.18bn a day,” Meric said.
Sources in Brussels said one measure being considered is introducing quotas on hybrid vehicles and certain types of chemicals imported from China.
The Financial Times reported last week that the EU has asked China to voluntarily reduce exports of hybrids, as sales soared despite extra tariffs beyond the 10% levy that applies to all third-country car imports.
The latest figures show imports of hybrid cars that do not need to be plugged in have grown tenfold, from just under 4,000 vehicles sold in October 2024 to 50,000 in July 2026.
China has repeatedly warned it is ready for a trade war, but its commerce ministry maintained a diplomatic stance last week ahead of the October summit.
“Any solution between China and the EU must ensure a balance of interests, comply with World Trade Organization rules and the respective domestic laws of every side, and fully take into account the interests of industries on both sides,” it said.
Chinese exports will be high on the agenda at Thursday’s summit in Washington, with expectations that a 12-month suspension of Beijing’s rare earth export restrictions will be extended.
Kurt Tong, the former US consul general to Hong Kong and managing director of the Asia Group strategic advisory firm, said that if a reprieve is not announced this week, it could be announced at the Asia-Pacific Economic Cooperation summit next month.
China introduced the rare earth export restrictions in April 2025, almost bringing the car industry in the EU, Mexico, US and UK to a halt amid shortages of permanent magnets.
It suspended the ban last October when Trump met Xi in South Korea but did not offer any further concessions when the two presidents last met in May in Beijing.
Frequently Asked Questions
FAQs The EU Spends Three Times as Much on Imports from China as It Earns from Exports
Beginner Questions
1 What does it mean that the EU spends three times as much on imports from China as it earns from exports
It means the EU buys about 3 worth of goods from China for every 1 worth of goods it sells to China This gap is called a trade deficit
2 What is a trade deficit in simple terms
A trade deficit happens when a country or region imports more than it exports Its spending more on foreign goods than it earns from selling its own goods abroad
3 How big is this gap in actual numbers
The EU imports roughly 500600 billion worth of goods from China each year while its exports to China are around 200 billion The exact figures shift year to year
4 Why does the EU buy so much from China
China offers low prices huge production capacity and a wide range of productsfrom electronics to clothing to machinery EU consumers and businesses buy these goods because theyre affordable and widely available
5 Why doesnt the EU just sell more to China
Several reasons Chinese consumers often prefer local brands China has tariffs and rules that make it harder for foreign companies to compete and some EU products arent in high demand there
6 Does a trade deficit mean the EU is losing money
Not exactly A deficit isnt a direct lossit means money is flowing out to buy goods The EU gets products in return which consumers and businesses use But a large persistent deficit can cause economic concerns
7 What kinds of goods does the EU import from China
Mostly electronics machinery clothing furniture toys and increasingly electric vehicles and batteries
8 What does the EU export to China
Cars machinery pharmaceuticals chemicals and luxury goods like fashion and wine
Intermediate Questions
9 Is this trade deficit a problem for the EU
It can be A large deficit can hurt domestic industries reduce manufacturing jobs and create dependency on one supplier However it also means consumers get cheaper goods
10 How does this affect ordinary people in Europe
Positively they get cheaper products Negatively some factories close or move which can cost jobs in certain regions
