EU Trade Deficit With China Exceeds €1bn Daily as China Calls for Open Markets

1-Minute Brief

The EU's significant trade deficit with China has prompted calls from China to avoid protectionist measures in the auto sector.

Key Facts

• A study found the EU spent three times more on imports from China than it exported to China.
• Customs data showed the EU’s trade deficit with China was over €1bn per day in July.
• The trade data was reported days before a summit between Xi Jinping and Donald Trump.
• China’s Commerce Minister Wang Wentao urged the EU to keep its auto markets open and avoid protectionism.
• Wang Wentao called for a 'fair, open and non-discriminatory' environment for Chinese automakers.

What Happened

A study revealed a large EU trade deficit with China in July, while China’s commerce minister urged the EU to maintain open auto markets and avoid protectionist policies.

Why It Matters

The trade imbalance highlights ongoing economic tensions between the EU and China, particularly as China seeks to ensure access for its automakers amid concerns about potential EU trade barriers.

What's Next

Further discussions on trade policy and market access between the EU and China are expected, especially regarding the automotive sector and potential regulatory changes.