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Europe wants to rebalance trade with Beijing, but can’t quit Chinese air conditioners

The EU is trying to reduce its record trade deficit with China by October, but demand for Chinese-made air conditioners during Europe’s heatwave is increasing imports—highlighting how difficult it will be to narrow the gap.

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El Mahldi

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Europe wants to rebalance trade with Beijing, but can’t quit Chinese air conditioners

Europe and China issued a rare joint statement aimed at balancing trade and improving market access. The EU’s trade chief said the two sides must deliver “tangible results” by October, including addressing trade imbalances, export controls, and intellectual property.

The effort is being tested by timing and demand. As a severe European heatwave drives record temperatures, people are rushing to buy air conditioners—products that are largely made in China. The surge in orders illustrates the central problem facing Brussels: even if Europe wants to reduce dependence in certain areas, consumer demand during peak conditions can quickly raise imports.

Analysts also argue that Beijing’s assurances haven’t shown enough policy action to significantly shrink the EU’s surplus with China. The bloc’s goods deficit with China has been rising, with electrical equipment and machinery among the biggest import categories.

At the same time, experts note that China’s advantage is not limited to finished appliances. The larger issue for the EU is that many high-tech and industrial inputs come from Chinese supply chains, making “rebalance” efforts harder to execute without undermining European production.

Overall, the reporting frames the EU-China trade push as a balancing act between cutting the deficit and maintaining access to goods and inputs that Europe—especially during emergencies like extreme heat—still needs from China.

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