European Commission President Ursula von der Leyen has said the European Union will use all the tools at its disposal to reduce the bloc's trade deficit with China, in a signal that Brussels is preparing to take a harder line on economic relations with Beijing.
The commitment reflects mounting concern in European capitals about the scale of the imbalance in goods trade, which has become a politically charged issue as the EU seeks to protect domestic industries while maintaining a working relationship with one of its largest trading partners.
Von der Leyen's remarks point to a widening set of instruments the Commission is willing to deploy, from trade defence measures such as anti-dumping and anti-subsidy duties to broader policy tools aimed at securing reciprocal access for European companies in the Chinese market.
The EU has in recent years sharpened its trade enforcement posture, introducing new mechanisms designed to guard against distortions caused by foreign subsidies and to screen inbound investment in sensitive sectors. Those instruments give Brussels more leverage than it had a decade ago, when its trade policy toolkit was largely limited to conventional tariff and anti-dumping actions.
At the same time, the Commission has sought to avoid a full-scale decoupling from China. Officials have repeatedly stressed that the goal is to reduce risky dependencies and rebalance the relationship, rather than to sever economic ties. That balancing act is complicated by the fact that European manufacturers, particularly in the automotive and machinery sectors, remain heavily exposed to Chinese demand and supply chains.
The trade deficit has become a focal point for European industry groups, which argue that Chinese firms benefit from state support, preferential financing and restricted market access in ways that put European competitors at a disadvantage. Beijing has consistently rejected such characterisations, maintaining that its industrial policies comply with international rules and that its market remains open to foreign businesses.
Von der Leyen's intervention comes as the EU weighs how aggressively to pursue its trade agenda while managing broader geopolitical tensions. The bloc has opened investigations into Chinese electric vehicle subsidies and has considered measures targeting other sectors where European producers say they face unfair competition.
Any escalation carries risks. China is a major export market for European goods and a critical source of components for the continent's manufacturing base. Retaliatory measures from Beijing could hit European agriculture, luxury goods and aerospace, sectors that have previously been drawn into trade disputes.
For British businesses, the shift matters because the UK trades in the same global markets and often competes with both European and Chinese firms. A more assertive EU stance on China could reshape supply chains, investment decisions and pricing across industries that operate on both sides of the Channel.
The Commission is expected to continue pressing for concrete outcomes on market access, procurement and industrial subsidies in its dialogue with Beijing. Von der Leyen's language suggests that if those talks stall, Brussels is prepared to move ahead with unilateral measures rather than wait for a negotiated settlement.
How far the EU is willing to go will depend partly on the response from member states, some of which are far more exposed to Chinese trade than others. Germany's automotive industry, in particular, has warned against measures that could provoke retaliation, while other capitals have pushed for a firmer approach.
The coming months are likely to bring further scrutiny of specific sectors, with the Commission under pressure from European producers to act. Von der Leyen's commitment to using all available tools sets the tone for a period in which trade policy will be used more openly as an instrument of industrial strategy.