China’s growing trade surplus with the European Union (EU) continues to raise concerns that the region is becoming a target for redirected exports. Chinese exporters are focusing more on Europe to sustain their global market share, considering higher tariffs imposed by the U.S. on Chinese products. In the first four months of 2025 alone, China’s trade surplus with the EU hit a record $90 billion, and the trend is expected to accelerate.
Although Chinese exports are presently rerouting through Latin America and Southeast Asia, large volumes are heading directly to Europe due to its substantial consumer base. U.S. tariffs are still higher than at the start of the year, giving China more reason to redirect goods to Europe. At the same time, the yuan has dropped to its lowest level in over a decade against the euro, making Chinese goods even more affordable in Europe.
French and Chinese officials recently met in Paris, stressing cooperation but acknowledging clear differences. Germany, traditionally a strong trading partner with China, is also seeing a shift. In 2020, China had a trade deficit of more than $18 billion with Germany. By 2024, that had reversed to a surplus of $12 billion. If the current pace continues, the surplus could exceed $25 billion by the end of this year.
EU officials are closely assessing the situation. The EU trade chief, Maros Sefcovic, confirmed the 27-nation bloc is monitoring containerized imports from China for signs of redirected Trans-Pacific trade flows to Europe.
Source: gCaptain
