The European Union faces challenges managing its expanding trade deficit with China, while member countries are divided on how to respond.

In spite of international disputes and the 2025 Trump tariff war, trade between the European Union and China maintained its momentum last year.

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According to recent Eurostat data, the EU exported goods worth €199.6 billion to China, while its imports from China amounted to €559.4 billion, resulting in a trade deficit of €359.8 billion.

Compared to 2024, EU exports dropped by 6.5%, whereas imports from China increased by 6.4%.

Looking at a longer period since 2015, EU exports to China have risen by 37.1%, and imports have almost doubled, growing by 89%.

Machinery and mechanical appliances, including machines for processing textile fibres and harvesting equipment, constitute 22.7% of EU exports to China.

These are followed by electrical machinery, such as water heaters and hair clippers, together with audio-visual devices at 14.5%, and vehicles accounting for 8.2%.

On the import side, just five categories make up close to two-thirds of the total.

Electrical machinery and audio-visual equipment represent 29.5%, followed by machinery and mechanical appliances at 19%.

Redirection of trade

The consequences of the 2025 Trump tariff war compelled nations to modify production chains and logistics, redirecting shipments toward markets unaffected by tariffs.

For example, in 2025, China compensated for losses in the US market by increasing trade with Southeast Asia, Europe, and Africa.

Nonetheless, trade flows demonstrated resilience, with exports from both Europe and China continuing to grow, according to the Brussels-based think tank Bruegel.

However, the EU is encountering difficulties curbing the growing trade deficit with China, which has triggered serious worries about unfair competition, industrial decline, and widespread unemployment across Europe.

While Brussels has long criticized the adverse effects of Beijing’s state-controlled economic system—including industrial excess capacity and large subsidies—EU member states still fail to unify behind a joint strategy to counteract these issues.

More recently, Péter Magyar, who won a landslide victory in the Hungarian elections last Sunday, stated that he intends to «review» Chinese investments in Hungary, particularly in the electric vehicle sector, but «without the aim of terminating or preventing them.»