EU seeks trade balance with China as heat wave drives air conditioner imports
10 reported
The European Union and China have agreed to work toward balancing trade by October, but a historic heat wave is driving unprecedented demand for Chinese-made air conditioners, highlighting the difficulty of addressing the trade imbalance. European trade chief Maros Sefcovic and China’s Commerce Minister Wang Wentao issued a rare joint statement on Monday, agreeing to set up a bilateral working group to monitor trade flows. Sefcovic said Chinese exports to the EU keep rising while EU market share in China shrinks, calling the trend “not sustainable.” The bloc’s goods deficit with China grew 15% to €360 billion last year, with all 27 member states experiencing a shortfall, and expanded to €98 billion in the first quarter. Air-conditioning ownership in Europe stands at around 20% of households, far below the nearly 90% penetration rate in the U.S., according to the International Energy Agency. None of Europe’s five best-selling air-conditioner brands is owned in the EU, with Chinese companies holding about 32% of the European market by retail volume in 2025. Analysts expressed skepticism that China has made real commitments, with one economist calling the progress “smoke” to deter Europe from more protectionist measures.
What’s reported
The EU and China released a joint statement on Monday aimed at balancing trade and addressing market access issues.
European trade chief Maros Sefcovic said “tangible results” must be delivered by October.
The two sides agreed to set up a bilateral working group to monitor trade flows.
China provided “reassurance” that existing export controls on rare earths and permanent magnets will not disrupt EU supply chains.
The EU’s goods deficit with China grew 15% to €360 billion last year and expanded to €98 billion in the first quarter.
Air-conditioning ownership in Europe is around 20% of households, compared to nearly 90% in the U.S.
None of Europe’s five best-selling air-conditioner brands is owned in the EU; Chinese companies hold about 32% of the European market by retail volume in 2025.
Midea Group’s orders for its PortaSplit unit topped 200,000 this year as of Monday, double 2025’s pace.
A website tracking real-time inventory of Midea units in Germany went viral and showed units mostly out of stock.
Half of the EU’s imports from China are technology products, from cars to sophisticated machinery.
Key figures
Maros Sefcovic, European trade chief
Wang Wentao, China’s Commerce Minister
Gabriel Wildau, managing director at consultancy Teneo
Adrian Kübel, German software developer
Denis Depoux, global managing director at Roland Berger
Alicia García Herrero, chief economist at French investment bank Natixis
Andrew Small, director at the European Council on Foreign Relations
Sources: CNBC
