China’s trade surplus with EU hit record $90 billion

According to Bloomberg, in the first four months of this year, China’s trade surplus with the EU reached $90 billion, as goods flows changed due to US tariff policies. According to the news agency, Chinese shipments to Europe so far in 2025 are the second-highest on record.

The car market has largely fueled this shift. Chinese exports of electric and conventional vehicles to the EU are rising rapidly. Meanwhile, European shipments to China are seen falling, Bloomberg notes.  

Additionally, the yuan dropped to its lowest level against the euro in over a decade, making Chinese goods cheaper and more attractive to European buyers. 

Meanwhile, China’s demand for EU goods keeps declining as domestic consumption slows, and Chinese companies get more competitive and push foreign suppliers out of the market, Bloomberg says.

Economists at Allianz Trade believe this situation will prompt European policymakers to adopt protectionist measures to support the region’s producers.