Modern Diplomacy·4 min read·hard
Europe’s China Dilemma: The New Geopolitics of Free Trade
R
Rameen Siddiqui
✦AI Summary
The European Union is struggling to balance its commitment to a rules-based free trade order with the reality of a massive and growing trade surplus with China. Despite expanding trade agreements globally, the EU faces structural economic challenges due to China's heavy industrial subsidies.
China's goods trade surplus with the EU hit €360.6 billion in 2025, up 15% year on year, and expanded a further 10% in the first four months of 2026.
businesseconomypolitics
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