In Q1 2026, China's trade surplus with the EU reached €98 billion, with China exporting over €220 billion in goods while importing only €122 billion. The EU has labeled this the "China Shock."
European consumers, however, are voluntarily choosing Chinese products—especially EVs—for their better value, range, configuration, and lower costs.
European industries have responded with accusations of unfair competition and overcapacity, plus tariffs and import restrictions.
But such measures ultimately hurt European consumers, who end up paying more for no better products.
China's manufacturing strength, built over 30+ years, relies on a complete industrial system, market competition, and engineering talent. The success of China's Zhangxue Motorcycles is cited as a vivid example.
The reporter concludes that Europe must improve its own competitiveness, as trade is not a zero-sum game, and mutual benefit is the optimal path forward.
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