Rebalancing of trade with China 'existential' for EU, Commissioner Séjourné tells Euronews

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Published: 2026-09-23T17:21:15.108Z • Permanent link

EU Industry Commissioner Mina Damião Séjourné delivered a stark warning to Euronews, stating that the EU will consider using punitive trade measures if Beijing does not rebalance the trade deficit. The trade deficit, which currently stands at around €150 billion annually, costs the bloc thousands of jobs every week. This issue has been ongoing for years, with EU officials repeatedly calling on China to address the imbalance. The EU has proposed various measures to address the deficit, including tariffs and non-tariff barriers, but so far, China has refused to make significant concessions.

Séjourné's warning is a clear indication that the EU is running out of patience with China's lack of cooperation. The EU has already imposed some tariffs on Chinese goods, but these have had limited impact. The EU is now considering more drastic measures, including a total ban on certain Chinese products. This could have significant implications for the global economy, particularly in the tech sector, where China is a major player. Companies such as Huawei and Xiaomi are already feeling the pinch, with some EU officials calling for a complete ban on these products.

China's refusal to rebalance its trade deficit has been a major point of contention between the EU and China. The EU has accused China of using its vast economic resources to prop up its economy, while the EU's economy is struggling. China's exports to the EU are a major driver of its economic growth, and the EU is keen to protect its own industries. The trade deficit is just one aspect of the broader issue, with the EU also concerned about China's intellectual property theft and forced technology transfer practices.

The EU's decision to consider punitive trade measures could have significant implications for companies that trade with China. Research communities and markets are already feeling the impact, with many firms struggling to adapt to the changing trade landscape. The EU's decision could also have broader implications for the global economy, particularly in the tech sector. Companies such as Google and Microsoft are already feeling the pressure, with some officials calling for a complete ban on certain Chinese products.

The EU's decision could also have significant implications for EU companies that trade with China. Many firms are already struggling to compete with Chinese rivals, and the EU's decision could make it even harder for them to survive. The EU's decision could also have implications for the EU's own research and development efforts, particularly in the areas of artificial intelligence and cybersecurity. The EU is keen to maintain its position as a global leader in these areas, and the EU's decision could impact its ability to do so.

The EU's decision to consider punitive trade measures is part of a broader pattern of increasing tensions between the EU and China. The EU has been critical of China's human rights record, particularly in the Xinjiang region, and has also expressed concerns about China's treatment of dissidents and independent journalists. The EU has also been critical of China's economic practices, particularly its use of forced labor and intellectual property theft.