EU vows to use all tools to rebalance trade with China

European Commission President Ursula von der Leyen declared the European Union's trade deficit with China unsustainable and reached a tipping point, vowing to use all available tools to rebalance the relationship. Speaking in her annual State of the Union address to the European Parliament in Strasbourg on Wednesday, von der Leyen stated the bloc's goods trade deficit with China had grown to approximately 1 billion euros per day in 2025. "It has reached a tipping point," von der Leyen said. "Some say the second China shock is looming. But it's already here. It shows in our communities and factories across our Union. It leads to deindustrialization in the industrial heartlands of Europe. This is unsustainable." The Commission president emphasized that while the EU remains engaged in dialogue with Beijing, those talks must now produce concrete outcomes. "Let me be very clear. We will use all tools at our disposal to rebalance our relationship. Words are good. But deeds are better," she said. The warning comes as the EU faces an October deadline set by European leaders to achieve results from ongoing trade negotiations with China.