The European Union’s trade deficit with China expanded to €36.5 billion in July 2026, as reported by Eurostat. This increase highlights a significant imbalance, with the EU importing roughly three times more goods from China than it exported to the Asian nation.
Data from Eurostat reveal that EU imports from China rose by 8% year-on-year, reaching €53.9 billion in July. In contrast, exports from the EU to China saw a slight decline of 1.6%, totaling €17.4 billion. This growing gap marks a rise from the €32.3 billion deficit recorded in July 2025.
Over the first seven months of 2026, the EU’s trade deficit with China amounted to approximately €234 billion, underscoring the ongoing trade imbalance between the two economies. This situation is prompting EU officials to explore strategies to foster a more balanced trade relationship, particularly by targeting imports in specific sectors.
One area of focus is the import of hybrid vehicles, which have surged since the EU imposed additional tariffs on Chinese electric vehicles in 2024. Hybrid models, facing different tariff conditions, have seen increased import activity. European authorities are discussing potential voluntary limits on these imports to address the trade tensions.
As trade relations with China remain a pivotal topic, they are expected to feature prominently in forthcoming EU-China discussions. The EU is keen on boosting its exports to China while reducing reliance on Chinese goods, particularly in strategic sectors such as chemicals and hybrid vehicles.