EU-China trade friction is moving beyond EVs

Europe’s trade frictions with China have spread from electric vehicles to a wider range of industries, ranging from chemicals to critical materials and clean-technology supply chains.

Chinese exports to the European Union accelerated sharply in 2022, while EU exports to China started flat-lining around that time and have never matched their February 2023 peak. Chinese exports are also taking an ever-larger share of the EU’s total imports.

China’s competitive export pricing is contributing to softer trends for global goods prices. In 2024, the EU imposed duties on Chinese EVs, but the trade deficit kept widening. Rules on steel and small e-commerce parcels are in focus this year, as is the EU’s carbon tax (CBAM).

CEIC users can click through for more charts on sensitive sectors, particularly midstream inputs such as permanent magnets, lithium-ion batteries and solar cells. The highest-dependency categories are increasingly tied to concerns surrounding defense and strategic supply chains.