European Commission President Ursula von der Leyen has intensified pressure on Beijing to address the bloc's record trade deficit, warning that Brussels is prepared to deploy its full arsenal of trade defence measures if negotiations fail to deliver results.
Speaking on Thursday at Medef, the French business federation, von der Leyen stressed that while dialogue with China remains essential, it must produce tangible outcomes. “When dialogue is not enough, we must be ready to make full use of our instruments,” she said.
The EU's trade deficit with China has ballooned to roughly €1 billion per day, a figure that has become a central point of contention in EU-China relations. The Commission has set October as a deadline to reach a rebalancing agreement with Beijing.
A surge in trade defence investigations
Von der Leyen highlighted a sharp increase in the EU's trade defence activity, noting that 30 investigations into suspected dumping of Chinese products have been opened over the past year—nearly three times the historical average. “We are stepping up investigations significantly,” she said.
The Commission's president also pointed out that Chinese imports into the EU have risen by 45% over five years, intensifying concerns among European manufacturers about unfair competition.
“China is a key economic partner. And our approach is clear and consistent: derisking without breaking ties. But being a partner does not mean accepting permanent imbalances,” von der Leyen added.
The remarks come amid heightened friction between Brussels and Beijing. Since talks were launched last June, China has moved to ban its firms from participating in EU antitrust probes, while the Commission has continued to open new investigations into Chinese products.
All 27 EU member states now record a trade deficit with China, a fact von der Leyen used to underscore the scale of the challenge.
In June, EU leaders gave von der Leyen a mandate to rebalance the relationship through dialogue and the use and review of defence mechanisms. Among these is the EU's anti-coercion instrument, sometimes called the “trade bazooka,” which can be triggered if a foreign country pressures the EU to change its policies. This tool allows the EU to impose measures such as restricting access to public procurement or suspending intellectual property rights.
The threat of retaliation has loomed over EU-China trade relations in recent months, with Beijing warning several times that it would respond to proposed EU regulations that could limit market access for Chinese firms.
Von der Leyen's latest statements signal that the EU is willing to escalate if necessary, while still leaving the door open for a negotiated settlement. The coming weeks will be crucial as the October deadline approaches.
