The European Union's trade imbalance with China has become an unsustainable burden, according to Javi López, Vice-President of the European Parliament. Speaking in Brussels, López highlighted that the bloc is running a trade deficit of roughly €1 billion every day — a figure he described as a structural weakness that cannot persist.
López, a Spanish MEP from the Socialists and Democrats group, stressed that the deficit reflects deeper issues in Europe's economic relationship with Beijing. "This is not just a number; it represents lost opportunities for European workers and companies," he said. The EU imported goods worth €626 billion from China in 2024, while exporting only €223 billion, according to Eurostat data cited by his office.
A call for strategic autonomy
The Vice-President argued that the EU must move beyond a reactive trade policy and adopt a more assertive approach to reduce dependency on Chinese manufacturing. He pointed to sectors such as electric vehicles, batteries, and semiconductors, where European industries are struggling to compete with state-subsidised Chinese rivals. The European Commission has already launched an anti-subsidy investigation into Chinese electric vehicle imports, a move that has drawn warnings from Beijing about potential retaliation.
López's comments come amid a broader debate in Brussels about how to balance trade with China while maintaining transatlantic ties. The EU is currently navigating tariff tensions with the United States and a sanctions dilemma over Russia, adding complexity to its trade strategy. Some member states, particularly Germany and France, have urged caution in confronting China, fearing damage to their export-oriented economies.
However, López insisted that the status quo is no longer viable. "We cannot continue to finance China's industrial expansion with our own market," he said. He called for a coordinated European industrial policy that invests in critical technologies and reduces reliance on foreign supply chains.
Implications for European industry
The trade deficit is particularly acute in high-tech goods. European companies have lost market share in solar panels, telecommunications equipment, and advanced machinery to Chinese competitors. The European Commission's recent proposal for a "Critical Raw Materials Act" aims to secure access to essential minerals, but critics argue it does not go far enough to address the underlying imbalance.
Meanwhile, European automakers like Volkswagen are deepening their ties with China through partnerships such as the one with Horizon Robotics for self-driving technology. While such deals offer short-term gains, they also raise concerns about technology transfer and long-term competitiveness.
López also warned that the deficit could undermine Europe's ability to enforce its own standards on labour rights and environmental protection. "If we are dependent on Chinese imports, we lose leverage to demand fair trade practices," he said. The European Parliament has previously called for a carbon border adjustment mechanism to level the playing field, but implementation has been slow.
The Vice-President's remarks have resonated in capitals across the continent. In Berlin, policymakers are weighing the risks of a trade war with China against the need to protect German industry. In Paris, President Macron has advocated for "European sovereignty" in trade and technology. The debate is likely to intensify as the EU prepares to update its trade strategy later this year.
For now, López's warning serves as a reminder that Europe's economic relationship with China is at a crossroads. Without decisive action, the €1 billion daily deficit may become a permanent feature of the transcontinental trade landscape.
