What is the state of trade relations between EU and China?

By Inês Trindade Pereira & video by Mert Can Yilmaz

Over the past decade, trade between the EU and China has consistently grown. 

The EU remains China's top trade partner, while China ranks as the EU's second-largest.

Germany, the Netherlands and Italy are the top importers and exporters of goods to and from China. 

More than half of the goods the EU imports from China are mechanical appliances and electrical equipment. Vehicles and aircraft make up less than 6%, followed by organic chemicals at 4.7% and clothing accessories at 4.5%.

On the other hand, more than a third of EU exports to China are mechanical appliances and electrical equipment. This is followed by vehicles and aircraft at 16.7%, pharmaceutical products at 9.3%, and optical instruments at 7.2%. 

EU-China trade disputes

China's largest electric car maker, BYD, reported record sales of hybrids and electric vehicles worldwide in 2024, driven by strong domestic demand and successful government trade-in programs.

BYD's sales of battery electric vehicles rose by approximately 12.08% compared to 2023, reaching a total of 1.76 million vehicles.

In late 2024, the EU imposed duties on Chinese electric vehicles after determining that state subsidies allowed Chinese manufacturers to undercut European prices. 

However, China criticised these measures as protectionist. 

In retaliation, China launched an anti-dumping investigation into EU dairy products, which could result in tariffs on imports such as cheese and milk. This move mirrors previous actions in other sectors and reflects escalating trade tensions between the two economies.

Video editor • Mert Can Yilmaz