EU-China trade deficit hits €360b, Von der Leyen alarms at G7 summit

EU-China trade deficit hits €360b, Von der Leyen alarms at G7 summit
Credit: Ursula von der Leyen on X

European Commission President Ursula von der Leyen stated on Monday that G7 leaders meeting in Évian, France, are focusing on global economic imbalances, the wars in Ukraine and the Middle East, Ebola, artificial intelligence safety, and protecting children online, in remarks alongside European Council President Antonio Costa.

Von der Leyen said a central issue for the summit was “global economic imbalances”, which she described as a situation where some countries “produce too much and do not consume enough, and vice versa”.

She said 2025 would be the first year in which all EU member states had a trade deficit with China, and that the EU’s trade deficit with China had reached €360 billion.

The EU’s approach was “de-risk, not decouple”, she declared, adding that this included building more domestic capacity, expanding free trade agreements to diversify supply chains, and using measures such as safeguards and anti-subsidy tools to address what she called unfair competition and coercion.

Von der Leyen said G7 countries were working with partner nations on a “critical raw material agreement”, referring to materials used in technologies such as batteries, electronics and renewable energy systems.

Middle East agreement and Ukraine funding

Von der Leyen welcomed what she called an agreement reached between the United States and Iran, saying the priority was implementation and that the Strait of Hormuz “must reopen” with freedom of navigation restored “toll-free”.

She said the agreement should lead to wider talks and “the end of Iran’s nuclear and ballistic programmes”.

She also called for a “genuine ceasefire” in Lebanon and “full respect for Lebanon’s sovereignty”, adding that energy dependency had again been “weaponised”, and that leaders would discuss reducing dependence on transit through the Strait, including by developing alternative export routes.

On Ukraine, von der Leyen said President Volodymyr Zelenskyy would attend the summit, and that Europe’s support included a €90 billion loan package covering “two-thirds” of Ukraine’s financing needs for this year and next year.

The first disbursements would come “still this month”, she said, adding that other partners would need to cover the remaining third.

She noted the EU would contribute €75 million in grant funding for the New Safe Confinement — the protective structure at the Chornobyl nuclear site — and that Europe and Canada were leading preparedness work with Ukraine ahead of winter.

Von der Leyen also said the first cluster of EU accession negotiations with Ukraine had opened, describing it as a step forward in the process of joining the bloc.

On artificial intelligence, she stressed that G7 cooperation was needed on testing “frontier models” before they enter service, comparing this to safety checks used for aeroplanes and medical devices.

She also said Europe had presented a “Tech Sovereignty package” to drive AI innovation.

Von der Leyen said leaders would discuss protecting children online, arguing that platforms should be “safe by design” in Europe, with a particular focus on children and teenagers.


Copyright © 2026 The Brussels Times. All Rights Reserved.