Customs data analyzed by the Mercator Institute for China Studies shows the EU bought about €3.10 in Chinese goods for every €1 it sold to China in July; Brussels is weighing trade measures ahead of planned talks in October.
In July the EU’s trade deficit with China was €36.5bn, equivalent to about €1.18bn per day.
From January to July the cumulative deficit reached €234bn, roughly €21bn higher than the same period in 2025.
Brussels is considering measures including quotas on certain hybrids and chemicals as EU officials prepare for talks with China.
# What happened
Customs data analyzed by the Mercator Institute for China Studies (Merics) shows the European Union's trade deficit with China widened in July. The deficit for that month was €36.5bn, which Merics calculates as roughly €1.18bn per day. Year-to-date through July, the deficit reached €234bn — about €21bn larger than in the first seven months of 2025.
# How big the imbalance is
# Why this matters now
The figures arrive as EU and Chinese officials prepare for high-level talks. The EU's trade commissioner and other officials have scheduled meetings, and Brussels has set an October deadline for "tangible results" to curb the widening imbalance. The timing also precedes a summit between China's president and the US president, where trade topics — including Chinese export controls on critical materials — are on the agenda.
# Which sectors are driving concern
# Policy responses under consideration
Sources in Brussels say possible actions include quotas and enforcement measures targeted at categories where imports have grown rapidly. The EU has previously applied extra tariffs and continues to use trade tools as part of its strategy. Diplomatic talks with China are being scheduled to seek voluntary remedies as well as negotiate rules that comply with World Trade Organization obligations.
# China's stance
China's commerce ministry has signaled a diplomatic approach ahead of the October meeting, saying any solution should protect the interests of industries on both sides and comply with WTO rules and domestic laws. China has previously warned it is prepared for a trade war but has used suspensions and temporary measures before — for example around rare earth export controls introduced in 2025.
# What to watch next
European Union and Chinese officials have been holding talks in Beijing ahead of the bloc’s October deadline for seeing “tangible results” in efforts to curb a trade deficit running at €1 billion-plus (US$1.2 billion) per day. Denis Redonnet, the EU’s top trade enforcer, has led the European delegation, the South China
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