China’s trade surplus with the European Union (EU) has raised concerns, leading to efforts by Beijing to strengthen ties with individual EU members to boost exports. Despite the EU’s concerns over the growing surplus, China has been increasing its trade surplus with the EU, which reached 360 billion euros in 2025 and rose by 24% year-on-year in the first half of this year. China is strategically engaging with countries near the EU, like the UK and Morocco, to access the EU single market and influence European companies operating in China.
The EU is considering actions to address the issue, with the EU’s trade commissioner Maros Sefcovic engaging in consultations with Chinese commerce minister Wang Wentao on trade and investment balancing, export controls, intellectual property rights, and WTO reform. Sefcovic has set a deadline for tangible progress by October to tackle China’s surplus with the EU. In return, China is seeking concessions such as reduced tariffs on Chinese electric vehicle imports and relaxed controls on chip-manufacturing machines exports from the Netherlands’ ASML to China.
Despite strained relations with Brussels, China has been actively engaging with individual EU members, including welcoming visits by German Chancellor Friedrich Merz and Spain’s Prime Minister Pedro Sanchez. China has emphasized its commitment to a mutually beneficial relationship with the EU, supporting European integration and cooperation on a balanced basis. However, at the corporate level, many EU companies are facing challenges due to China’s export controls on rare earths imposed during the US-China trade war.
