The European Union's relationship with China is undergoing a significant transformation, with the EU increasingly prioritizing economic security, industrial resilience, and technological sovereignty over unrestricted market access. In June 2026, the European Council endorsed a tougher trade policy toward China, reflecting mounting concerns over widening trade imbalances and growing dependence on Chinese critical minerals and green technologies.
This decisive shift, signaled by the “de-risking” concept introduced in March 2023, aims to address structural challenges and the erosion of Europe's manufacturing base. The EU's trade deficit with China dramatically widened from €180 billion in 2015 to €360 billion in 2025, leading to industrial closures like Volkswagen cutting 100,000 jobs. Brussels has implemented defensive trade instruments, including FDI screening, an anti-coercion instrument, and anti-subsidy probes on Chinese electric vehicles, imposing duties between 7.5% and 35.5%. Despite China's retaliatory measures and accusations of protectionism, the EU is expected to continue its dual-track approach of de-risking while maintaining China as an indispensable trading partner.
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