EU Shifts to Defensive Trade Policy as Chinese Exports Surge and Trade Deficit Widens (legrandcontinent.eu)

• EU trade deficit with China doubled to €360 billion in 2025.
• German industrial sector lost 130,000 jobs in 2025; Volkswagen to cut 100,000 jobs.
• EU's Industrial Accelerator Act mandates local content and technology transfers for foreign investments.
• China adopted a regulation enabling countermeasures against "illegal extraterritorial jurisdiction."
• EU member states diverge: Spain courts Chinese investment, while France and Germany push for tougher policies.

"The European Union is adopting a more defensive economic stance toward China, prioritizing industrial security over unrestricted market access. The EU trade deficit with China doubled to €360 billion in 2025, Chinese exports are up 50% since 2019, and German industrial job losses hit 130,000 in 2025. The EU's Industrial Accelerator Act imposes strict conditions on foreign investments and aims to boost manufacturing to 20% of GDP by 2035. Tensions persist as China counters with its own regulatory measures, while EU member states show divergent approaches."