A widening trade gap between the European Union and China is now inflicting roughly €1 billion a day in losses on the European economy, European Commission President Ursula von der Leyen told lawmakers in Strasbourg. She warned that a flood of cheap, state‑backed Chinese goods is dealing a heavy blow to European factories and risks shuttering plants and hollowing out traditional industrial hubs.

In response, Brussels has stepped up talks with Beijing to restore fair competition and protect European businesses. At the same time, domestic demand in China has weakened noticeably, leaving Chinese suppliers increasingly dependent on buyers in the EU. Despite the stark rhetoric, von der Leyen did not outline specific defensive measures, tariffs, or barriers that Brussels may deploy against unfair competition.

Disputes are intensifying amid growing trade flows. Bilateral trade has topped $608 billion year‑to‑date, up more than 12%. However, trade flows remain one‑sided. China’s exports to Europe total about $425 billion, while Europe’s exports to China stand at roughly $182 billion, a gap that reinforces Asian manufacturers’ pricing edge.