Europe wants less dependence on China, but imports continue to grow
16:08
Europe is trying to reduce its economic dependence on China, but trade data point in the opposite direction. The EU’s trade deficit with China reached a record EUR 196 bln, up more than 9% y/y, while imports rose over 5%. Cars and electric batteries accounted for one-third of the increase, supported by China’s extensive state aid, including subsidies, tax incentives, and innovation financing. Poland’s imports from China rose 11% y/y and have doubled since 2019, while Chinese car imports increased 2.5-fold.
Chinese automakers now account for nearly 10% of European new-car sales and more than 12.5% in Poland. A White House report also lists Poland among countries potentially involved in rerouting Chinese goods to the U.S.
