EU and China Clash Over a €360 Billion Trade Imbalance

2026, October 8

China / European Union

The EU is pressing China to address a rapidly widening trade imbalance during high-level talks in Beijing. EU Trade Commissioner Maroš Šefčovič is seeking concrete commitments from Beijing as the bloc's goods deficit with China has reached about €360.6 billion, equivalent to more than €1 billion a day.

China's central bank rejected accusations that Beijing deliberately keeps the yuan weak to gain an export advantage, noting that the currency has actually strengthened about 4% against the dollar this year. The dispute is strategically important because Chinese exports of cars, machinery, chemicals and other manufactured goods are increasingly competing with European industries, while the EU is considering tougher trade measures.