The European Union’s trade balance with China is tilting ever more heavily toward imports. Data analyzed by the Mercator Institute for China Studies show that the deficit reached €36.5 billion in July alone, while the pace of trade is highlighting a deepening dependence of the European market on Chinese goods.
The gap widened further in July
According to Merics’ analysis of Chinese customs data, the EU’s trade deficit with China climbed to €36.5 billion in July 2026. A year earlier, in the same month, the figure stood at €32.2 billion.
In daily terms, the trade gap translates into about €1.18 billion per day. The figure points not simply to a temporary imbalance, but to a persistent difference that is continuing to widen.
For every €1 exported, the EU imports €3.10
The trade ratio has moved beyond three to one. According to the data cited in the analysis, for every €1 worth of goods that the EU exports to China, it imports €3.10 worth of Chinese goods.
This pace puts at the center of the debate not only the competitiveness of European manufacturing, but also the bloc’s ability to correct an imbalance that is becoming structural.
€234 billion deficit in seven months
In the January-July 2026 period, the EU’s total trade deficit with China reached €234 billion. According to the reported figures, this is about €21 billion more than in the same period of 2025.
The widening gap is expected to be one of the main topics in upcoming contacts between Brussels and Beijing. European Trade Commissioner Maroš Šefčovič is expected to travel to Beijing on October 8 for meetings with his Chinese counterpart.
Hybrid vehicles and measures under consideration
Among the sectors drawing attention are hybrid vehicles, where Chinese imports into the European market have increased sharply. According to the data mentioned in the analysis, sales of these vehicles rose from fewer than 4,000 units in October 2024 to around 50,000 in July 2026.
This shift came after the EU imposed additional tariffs on electric vehicles made in China, while hybrids were not subject to the same approach. According to reporting by the Financial Times, the EU has asked China to voluntarily limit exports of hybrid vehicles to the European market.
Meanwhile, according to statements from the European Commission, other measures are also on the table, including quotas for hybrid vehicles and for some categories of chemicals imported from China.
Beyond cars, rare metals are also in the background
Trade relations between the EU and China are not limited only to consumer goods or vehicles. This balance also includes rare metals, considered essential for the automotive industry and other strategic sectors.
This makes the debate over the deficit broader than a tariff clash: the issue touches supply chains, industrial dependence and the EU’s real room to reduce China’s weight in the European market.
European Commission President Ursula von der Leyen has said that the trade imbalance between the two sides must be addressed.
But the figures so far suggest that, at least for the moment, Brussels is entering this debate from an economically unfavorable position.