EU trade deficit with China hits record €1bn per day, Eurostat data shows
9 reported
The European Union's trade deficit with China has reached a record €1bn per day, according to official data from the EU statistics body Eurostat. The gap between EU imports from China and exports to China totaled €31.9bn in April. European leaders are set to meet on Thursday to discuss measures to address the growing trade imbalance, which includes the increased presence of Chinese electric cars and everyday components in European factories. Trade expert Rafael Jimenez Buendía stated that shipments already recorded by China customs but not yet captured by EU customs suggest the deficit will persist in May and June figures. Alexander Julius, president of the trade organization Eurometal, urged EU leaders to recognize the dangers Chinese imports pose to European factories, warning that reliance on China could allow China to dictate the quantity and price of parts. The European trade commissioner, Maroš Šefčovič, said the deficit must be addressed, and analysts believe quotas on imports of Chinese chemicals and hybrid cars are a more viable option than tariffs. Beijing has rejected allegations of unfair state subsidies and argued that a significant share of the surplus comes from EU companies manufacturing in China and re-exporting to the bloc.
What’s reported
The EU trade deficit with China reached a record €1bn per day, according to Eurostat data.
The gap between EU imports from China and exports to China was €31.9bn in April.
European leaders will meet on Thursday to discuss measures to address the trade imbalance.
Trade expert Rafael Jimenez Buendía said the deficit is likely to persist in May and June figures.
Alexander Julius of Eurometal warned that reliance on China could allow China to dictate parts availability and pricing.
European trade commissioner Maroš Šefčovič said the deficit must be addressed.
Analysts believe quotas on imports of Chinese chemicals and hybrid cars are more viable than tariffs.
Beijing has rejected allegations of unfair state subsidies and said it has "never deliberately pursued a trade surplus."
China's state-owned Xinhua news agency said about half of China's exports are components that reduce costs for EU factories.
Key figures
Rafael Jimenez Buendía, senior fellow at the Mercator Institute for China Studies
Alexander Julius, president of Eurometal
Maroš Šefčovič, European trade commissioner
Emmanuel Macron, French president
Sources: The Guardian
