EU Seeks Solutions for Imbalanced Trade with China

The European Union, facing an 'unsustainable' trade deficit with China, is preparing to use every means to address the imbalance. With a daily goods trade deficit of €1 billion, the EU stresses the need for urgent dialogue and action to secure critical minerals and reestablish global balance.

The European Union is prepared to deploy every possible means to resolve its 'unsustainable' trade deficit with China, according to European Commission President Ursula von der Leyen. The deficit, amounting to €1 billion daily, has hit a critical juncture, impacting Europe's industry and economic stability.

EU leaders have tasked the European Commission, under the leadership of Trade Commissioner Maros Sefcovic, to deliver concrete outcomes in negotiations with China by October. Von der Leyen emphasized the mutual benefits of cooperation and urged for tangible results beyond mere rhetoric during her 'state of the Union' address.

Highlighting the EU's dependence on China for critical minerals like rare earths, Von der Leyen announced plans to create a European Corporation focusing on critical raw materials. This initiative aims to secure and stockpile essential resources necessary for the block's economic sustainability.