economy
EU faces ‘China shock’ as EV imports drive Beijing’s record surplus with bloc
China sold goods worth about $148bn to EU in first quarter of year, but imported just $65bn
TL;DR
- China's trade surplus with the EU reached a record $83bn in the first quarter of 2026.
- Sales of Chinese electric and hybrid cars to the EU nearly doubled in the first quarter of 2026 compared to the previous year.
- The EU is proposing an industrial strategy and has imposed tariffs on some Chinese car brands to protect its industries.
- China warns of retaliation against EU measures it deems discriminatory.
- Europe remains heavily reliant on China for rare earths, despite EU initiatives to diversify supply.