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EU Nations Unite Against China’s Trade Dominance Amid Widening Deficit

Germany aligns with France to counter China's economic challenge as the EU faces a growing trade deficit with Beijing.

July 20, 2026 One Min Read

POLICY WIRE — Berlin, Germany — In response to the European Union’s expanding trade deficit with China, Germany has adopted a stance more in line with France’s approach to Beijing. This shift was evident during the recent Franco-German Ministerial Council, where both nations presented a unified front.

The collaborative effort between Germany and France is set to be formalized in a joint roadmap, expected to be released by September at Germany’s request. “Our work between Germany and France is indispensable at a time when Russia threatens our security, when the People’s Republic of China challenges our economy, and when the transatlantic partnership is under pressure,” an official statement read.

This strategic alignment comes as the EU grapples with a significant trade imbalance with China, prompting a reevaluation of trade policies and economic strategies within the bloc. The joint roadmap is anticipated to outline measures aimed at addressing the trade deficit and enhancing economic resilience against external challenges.

Reporting by Policy-Wire (PW)

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