EU trade official Maros Šefčovič said the trade relationship with China is unsustainable and could destroy entire European industries [1].
This warning signals a potential shift toward a trade conflict between the two powers. If the European Union cannot reduce its reliance on Chinese imports for key resources and services, it risks undermining the long-term competitiveness of its own industrial base [1, 3].
Šefčovič, who serves as the Vice-President for the European Commission’s Trade portfolio, said during an interview earlier this month [1]. He said that the current trajectory of trade is risky for the bloc's economic stability. The concern centers on the EU's deep dependence on China for essential goods, which officials believe makes the relationship volatile [1, 3].
Economic data highlights the growing imbalance. The EU-China trade deficit jumped 18 percent in 2025 [4]. This increase occurred as U.S. tariffs diverted trade toward Europe, further complicating the trade landscape [4].
Analysts suggest the risk of an open conflict is underestimated. The Economist said that the chances of a trade war between the European Union and China are far higher than most Europeans realize [2].
Brussels remains the center of these negotiations as the EU attempts to balance its economic needs with the necessity of protecting domestic manufacturers. The current strategy involves evaluating how to maintain trade without sacrificing the viability of European-made goods [1].
“The trade relationship with China is unsustainable and could destroy entire European industries.”
The EU is moving toward a policy of 'de-risking' to avoid a systemic collapse of its industrial sector. By highlighting the unsustainability of the current trade deficit and the threat to domestic industry, the European Commission is preparing the public and markets for potential tariffs or restrictive trade measures to counter Chinese economic influence.
