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EU Trade Balance Turns Negative, a Trade War with China possible?

September 16, 2026
byTizian Stocker
0

    Update (15.09.2026): Analysis: European businesses caught between US-China trade and tech war (POLITICO⁠)

    Update (11.09.2026): News from China: Chinese experts warn EU protectionism cannot fix industrial woes (Global Times⁠)

    Update (09.09.2026): News: EU spirits exports squeezed by US-China trade tensions (Euractiv⁠)

    Update (08.09.2026): News: EU warns China to buy more European goods or risk trade war (Euractiv⁠)

    Update (08.09.2026): News: China’s exports accelerate on autos and high-tech goods (Euronews⁠)

    Update (07.09.2026): News: Commission proposes anti-China EU procurement rules (Euractiv⁠)

    Update (02.09.2026): Interview: Šefčovič warns China of harsher measures by October (YouTube)

    Update (02.09.2026): News: Think tank urges UK-EU cooperation against China (POLITICO)

    Update (01.09.2026): Analysis: EU split over courting Chinese factories (EUobserver)

    Update (31.08.2026): News: EU seeks to curb Chinese exports (POLITICO)

    Update (31.08.2026): Commentary from China: Europe risks miscalculating a trade war with China (Global Times⁠) 

    Update (31.08.2026): News: Hoekstra says Beijing weaponised clean-tech dominance (Euractiv)

    Update (31.08.2026): Interview: Hoekstra says China isn’t playing by trade rules (YouTube)

    Update (27.08.2026): Dutch think tank urges tougher China tariffs (EUobserver)

    Update (27.08.2026): Von der Leyen warns China on trade (Euractiv)

    Quick Brief:

    The EU recorded a €21.8 billion goods deficit in Q2 (April–June) 2026, after a €6.7 billion surplus in Q1 (January–March)

    The main driver was energy: the deficit in energy products widened to €101.1 billion

    Imports rose by €63.4 billion, considerably more than the €34.9 billion increase in exports

    The EU’s trade deficit with China reached €103.3 billion in Q2, adding to concerns over European industrial competitiveness

    Sources: Eurostat, Euractiv

    Transparency Note: Use of AI

    More Quick Briefs:

    DiplomacyEconomic PolicyEuropean GovernanceNational PoliticsTechnology and Digital PolicyTransatlantic RelationsCanadaEuropean UnionMark CarneySAFEUnique AllianceUSA

    Canada Eyes Closer EU Alliance

    Canada is exploring an unprecedented new relationship with the European Union as Prime Minister Mark Carney seeks to reduce dependence on the United States and deepen economic and security ties with Europe.
    →Update (15.09.2026): Analysis: How far can EU-Canada alliance go? (Euronews⁠)
    →Update (14.09.2026): Commentary: Canada’s unique alliance with EU is already taking shape (EUobserver⁠)
    →News: Canada eyes EU associate membership amid US tensions (Euronews⁠)
    →Commentary: EU should offer Canada deeper defence ties (ECFR⁠)
    →Quick Brief
    →Carney says Canada is not seeking EU membership, but wants a “unique alliance” that could bring the country substantially closer to the bloc
    →Ideas under discussion include easier movement of goods, services and workers, alongside deeper cooperation in defence, AI, energy and critical minerals
    →Canada is already moving closer to EU structures: it became the first non-European country to participate in the EU’s SAFE defence instrument in 2026
    →The shift comes as Canada-US trade tensions intensify, pushing Ottawa to diversify beyond its traditionally dominant economic relationship with its southern neighbour
    →Sources: Reuters⁠, Prime Minister of Canada⁠, Council of the European Union⁠
    →Transparency Note: Use of AI
    read
    Europe in the worldNational PoliticsEuropean UnionHungaryLGBTQ+ RightsLGBTQI+ RightsMinority rightsPeter Magyar

    Hungary to Remove anti-LGBTQ+ rules

    The Hungarian government is working to bring the country closer to the EU by addressing concerns over minority rights, such as the anti-LGBTQ+ rules.
    →The Hungarian government under new president Peter Magyar submitted a bill to remove anti-LGBTQ+ rules
    →Previously adopted by Orban's nationalist government, the rules aimed at prohibiting the "promotion of homosexuality" in media for underage audience
    →Restrictions of LGBTQ+ rights under Hungary's old government had faced criticism from the European Union and local rights groups
    →In a pledge to repair ties with the EU, Magyar looks to address concerns over democratic standards and minority rights
    →Source - Reuters
    read
    Arctic PolicyEconomic PolicySecurityAntónio CostaChinaEU CooperationEuropean UnionGeoeconomicsGeopoliticsGreenlandResourcesRussiaUSA

    Europe Pushes Deeper Into Arctic

    Twelve EU countries are calling for a stronger European role in the Arctic as Russia’s military presence, geopolitical competition and growing pressure over Greenland turn the High North into a strategic priority for Europe.
    →Twelve EU members, including Germany, France, Denmark, Finland and Sweden, want the EU to take a more strategic and proactive role in the European Arctic
    →The countries argue that the EU needs greater resources and investment to protect its interests while supporting security, sustainable development and prosperity in the region
    →Security has become increasingly important as Russia maintains a major Arctic presence and geopolitical competition over infrastructure, resources and new maritime routes intensifies. The EU is also concerned about growing Chinese activity
    →Greenland has added urgency: US pressure over the Danish territory has strained transatlantic relations, while European Council President António Costa says Arctic security must now be treated as European security
    →Sources: Reuters⁠, European Council⁠, EUR-Lex - EU Arctic Policy⁠
    →Transparency Note: Use of AI
    read
    European GovernanceSOTEU 2026

    SOTEU 2026

    On 16 September 2026, 09:00 – 11:50 (CEST), a livestream of the State of the Union speech will…
    →On 16 September 2026, 09:00 - 11:50 (CEST), a livestream of the State of the Union speech will be available on this page:
    →https://commission.europa.eu/strategy-and-policy/state-union_en
    read
    National PoliticsSecurityElectionsLiberalsMagdalena AnderssonSwedenUlf Kristersson

    Sweden Heads Into Close Election

    Sweden votes on 13 September in an increasingly close contest between the centre-left opposition and Prime Minister Ulf Kristersson’s governing bloc, amid concerns over foreign disinformation.
    →Update (15.09.2026): Analysis: Elisabeth Thand Ringqvist emerges as Sweden’s most powerful woman (POLITICO⁠)
    →Update (14.09.2026): Interview: Expert warns Sweden faces ‘very messy’ political situation after election (YouTube⁠)
    →Update (14.09.2026): News: Preliminary results give Swedish opposition three-seat majority (AP⁠)
    →Update (14.09.2026): Analysis: Sweden’s election remains very close (Euractiv⁠)
    →Update (13.09.2026): News: Early poll suggests Swedes reject far-right party in election (EUobserver⁠)
    →Update (11.09.2026): Analysis: Sweden’s fractured left holds narrow lead ahead of election (Reuters⁠)
    →Update (10.09.2026): Analysis: Sweden’s election could bring far right into heart of government (Reuters⁠)
    →Update (10.09.2026): News: Sweden warns Russia is targeting elections in France and Germany with disinformation (POLITICO⁠)
    →Update (09.09.2026): Analysis: Swedish Voter Barometer (Novus⁠)
    →Quick Brief:
    →Swedes will elect the Riksdag as well as regional and municipal councils on 13 September, with Prime Minister Ulf Kristersson seeking another term
    →The centre-left led by Social Democrat Magdalena Andersson remains ahead, but the governing right-wing bloc has narrowed the gap significantly in recent polls
    →The Liberals could be decisive: a recent Novus poll puts them at 4.3%, just above the 4% threshold needed to remain in parliament - potentially improving Kristersson’s chances of retaining power
    →The election also takes place under heightened security concerns. Swedish authorities say Russia is not prioritising the vote, but pro-Russian networks have already spread fabricated claims about electoral fraud
    →Sources: EUobserver⁠, Reuters⁠, Swedish Election Authority⁠
    →Transparency Note: Use of AI
    read
    International RightNational PoliticsSecurityUkraineWar in Ukraine24 February 2022DiplomacyHard WinterRussiaUSA

    Russia’s Invasion of Ukraine

    More than four years after Russia launched its full-scale invasion, Ukraine continues to resist as the war has evolved from Moscow’s failed attempt at a rapid victory into a prolonged conflict with no political settlement in sight.
    →Update (14.09.2026): Analysis: Ukraine races to counter Russia’s jet-powered drones (POLITICO⁠)
    →Update (14.09.2026): Analysis: Zelensky reiterates readiness for mutual energy strikes moratorium (ISW⁠)
    →Update (13.09.2026): Analysis: Russian strikes near Polish border signal growing escalation (ISW⁠) 
    →Update (12.09.2026): Analysis: Ukraine disrupts Russia’s Donbas offensive plans (ISW⁠)
    →Update (13.09.2026): Analysis: Anthropic AI joins Ukraine war after Russian exploitation (EUobserver⁠)
    →Update (11.09.2026): Analysis: Russian Offensive Campaign Assessment (ISW⁠)
    →Update (10.09.2026): Analysis: Russia spent over €110bn on Ukraine war so far in 2026 (EUobserver⁠)
    →Update (10.09.2026): Analysis: Russian Offensive Campaign Assessment (ISW⁠)
    →Update (10.09.2026): Analysis: Russian Occupation Update (ISW⁠)
    →Update (10.09.2026): Analysis: Zelenskyy gambles on pressure to force Putin into peace talks (POLITICO⁠)
    →Update (09.09.2026): Analysis: Russia’s claimed Kharkiv encirclement lacks evidence (EUobserver⁠)
    →Update (09.09.2026): News: Zelenskyy’s plane nearly hit by drone en route to Oslo (Euronews⁠)
    →Quick Brief:
    →Russia launched its full-scale invasion on 24 February 2022, expecting rapid military gains, but its attempt to seize Kyiv failed as Ukrainian forces resisted
    →The failed initial offensive developed into a long war of attrition, with Russia occupying Ukrainian territory while Ukraine continues to defend itself and strike Russian military and economic targets
    →Winter has repeatedly intensified pressure on civilians: Russia has systematically targeted Ukraine’s electricity and heating infrastructure, causing widespread outages and disruption
    →Diplomacy has not ended the war: renewed US-led efforts have so far failed to bridge fundamental differences between Moscow and Kyiv, while Russian military operations continue
    →Sources: UN Human Rights Monitoring Mission in Ukraine⁠, Reuters⁠, Associated Press⁠
    →Transparency Note: Use of AI
    read
    Economic PolicyMonetary PolicySecurityBudgetCouncil of the EUEU BorrowingEuropean Commission

    EU Budget Battle Intensifies

    Six fiscally conservative EU countries are demanding major cuts to Brussels’ proposed €2 trillion budget for 2028–2034, setting up a difficult fight over Europe’s future spending priorities.
    →Update (14.09.2026): News: EU plans cuts to staff and salaries in next long-term budget (POLITICO⁠)
    →Update (14.09.2026): News: EU countries split over scale of long-term budget cuts (Euractiv⁠)
    →Update (09.09.2026): News: Germany calls for hundreds of billions in EU budget cuts (Reuters⁠)
    →Update (09.09.2026): News: Costa says new EU taxes would reduce national contributions (POLITICO⁠)
    →Update (08.09.2026): News: France backs business tax to fund EU budget (Euractiv⁠)
    →Update (07.09.2026): News: Le Pen backs tobacco retailers against EU tax hikes (Euractiv⁠)
    →Update (07.09.2026): News: Ireland secures EU tax deal on carbon imports and e-waste (POLITICO⁠)
    →Update (04.09.2026): News: Spain urges EU climate adaptation fund and binding targets (Reuters⁠)
    →Update (04.09.2026): Commentary: EU budget could loosen China’s grip on critical raw materials (Euronews)
    →Update (03.09.2026): News: EU budget negotiators criticise frugal states over cuts (EUobserver)
    →Update (03.09.2026): Interview: Lithuania says eastern flank needs must shape EU budget (Euractiv)
    →Update (02.09.2026): News: Spain worried by EU budget debate (Euractiv)
    →Update (02.09.2026): News: EU budget camps remain deadlocked (EUobserver)
    →Update (31.08.2026): News: Ireland seeks to break EU budget deadlock (POLITICO)
    →Update (27.08.2026): Europe’s defence promise meets budget reality (ECFR)
    →Quick Brief:
    →Germany, Denmark, the Netherlands, Austria, Finland and Sweden want cuts of several hundred billion euros
    →The European Commission has proposed a nearly €2 trillion seven-year budget for 2028–2034
    →The six still want priority spending on defence, competitiveness, migration and European sovereignty
    →They reject new joint EU borrowing and demand cuts across spending areas as national budgets face consolidation
    →Sources: Euractiv, Reuters, Council of the EU
    →Transparency Note: Use of AI
    read
    European GovernanceMiddle East RelationsBritainEuropean UnionIrelandIsraelSanctionsSettlersWest Bank

    The EU and Sanctions on Violent Israeli Settlers

    Amid rising settler violence in the West Bank, the European Union has begun taking limited action against extremist Israeli settlers while internal divisions still constrain tougher measures.
    →Update (14.09.2026): News: Israeli rights group B'Tselem accuses Israel of dismantling Palestinian existence in West Bank (RFI⁠)
    →Update (08.09.2026): Analysis: Britons back Israeli settlement trade ban by more than two to one (ECFR⁠)
    →Update (08.09.2026): News: Israel closes British consulate in East Jerusalem over settlement trade ban (Reuters⁠)
    →Update (08.09.2026): News: Eleven European countries and Canada sanction Israeli settlement products (Le Monde⁠)
    →Update (08.09.2026): News: France and Canada join UK sanctions on Israeli settlements (POLITICO⁠)
    →Update (08.09.2026): News: UK plans trade restrictions on West Bank settlements (BBC News⁠)
    →Update (30.08.2026): Interview: Irish MEP says trade is EU’s only leverage over Israel (EUobserver)
    →Update (28.08.2026): Commentary: EU favours reforms over pressure on Israel (EUobserver)
    →Update (July 09, 2026): EU pitches trade ban with Israeli settlements (Euractiv)
    →Update (July 08, 2026): Ireland passes bill banning goods from Israeli settlements (Euractiv)
    →Update (June 18, 2026): Israel cuts ‘all contact’ with Kaja Kallas over apartheid comments (Euractiv)
    →Update (June 16, 2026): Kallas' plan to punish Israel rejected by the Commission (Euractiv)
    →Update (June 15, 2026): Kallas said she will ask the European Commission to propose further restrictive measures on trade against illegal Israeli settlements (Euractiv)
    →May 11, 2026:
    →Sanctions reflect rising settlement violence and humanitarian crises in the Palestinian territories
    →Hungary’s new government ended the veto blocking them
    →Stronger trade sanctions were not agreed upon
    →Critics say the measures remain limited despite rising West Bank violence
    →Source: The Guardian
    →Here is a commentary by ECFR on the topic
    read
    National PoliticsSecurityUkraineDronesEuropean DefenseGermanyHybrid ThreatLeipzig/Halle Airport

    Germany Probes Explosive Drone in Lepizig and Blames Russia

    German authorities are investigating a suspected explosive-laden drone after an incident temporarily disrupted operations at Leipzig/Halle Airport, raising concerns over hybrid threats linked to the war in Ukraine.
    →Update (13.09.2026): News: Germany suspects Russian spy drone behind Leipzig airport attack (POLITICO⁠)
    →Update (12.09.2026): News: Leipzig drone investigation leads to Russian GRU (SZ⁠) 
    →Update (04.09.2026): Interview: German military expert criticises Berlin’s fear of provoking Putin (EUobserver⁠)
    →Update (03.09.2026): News: Russia closes Goethe-Institut branches after drone incident (Reuters)
    →Update (02.09.2026): News: EU and NATO reject Russian intimidation over Ukraine aid (POLITICO)
    →Update (02.09.2026): News: Poland urges EU to expel more Russian diplomats (EUobserver)
    →Update (02.09.2026): News: Russian diplomats leave Brussels after Leipzig fallout (EUobserver)
    →Update (02.09.2026): News: EU restricts Russian tourist visas after Leipzig attack (Euractiv)
    →Update (02.09.2026): News: EU struggles to respond to Leipzig attack (Euractiv)
    →Update (02.09.2026): Commentary: Germans must take Russian threat seriously (Frankfurter Rundschau)
    →Update (01.09.2026): Commentary: Russia is testing NATO’s threshold (Adevărul)
    →Update (01.09.2026): Commentary: Germany sends moderate signal to Russia (Tages-Anzeiger)
    →Update (01.09.2026): Analysis: How credible is Russia’s threat to the EU? (EUobserver)
    →Update (01.09.2026): News: Germany blames Russia for Leipzig drone attack (POLITICO)
    →Update (29.08.2026): Germany plans to blame Russia for Leipzig attack (POLITICO)
    →Update (25.08.2026): Merz vows response to hybrid attacks (Euractiv)
    →Update (25.08.2026): Investigators find third drone and explosives (ZEIT)
    →Update (12.08.2026): Russia suspected in Leipzig attack (ZEIT)
    →Update (10.08.2026): Germany strengthens drone defence (ZEIT)
    →Update (10.08.2026): DNA found on Leipzig drone (ZEIT)
    →Update (07.08.2026): Drones spotted over military site (Deutschlandfunk)
    →Update (06.08.2026): Russian Political scientist Russia (Exile in London) believes Russia trains for acts of sabotage (Echo FM Online)
    →Update (06.08.2026): Finnish Newspaper says take the threat seriously, but avoid panic (Iltalehti)
    →Update (06.08.2026): Germany boosts airport security (Euractiv)
    →06.08.2026:
    →A suspected explosive-equipped drone entered the airspace around Leipzig/Halle Airport, prompting a temporary suspension of flight operations
    →Leipzig/Halle Airport is Germany's largest air cargo hub and a key logistics centre that has also been used for the transport of military equipment supporting Ukraine
    →German police and prosecutors are investigating whether the incident was an act of sabotage or part of a broader hybrid threat campaign
    →The case is expected to intensify discussions across Europe on protecting critical infrastructure, strengthening counter-drone capabilities and safeguarding military logistics
    →Sources: Politico Europe, Die ZEIT, Leipzig/Halle Airport
    →Transparency Note: Use of AI
    read
    European GovernanceEU CooperationEuropean UnionIrregular migrantsMigrationReturn Hubs

    Five EU Countries Agreed on Migrant “Return Hubs”

    Five EU member states expect the first irregular migrants who cannot be deported back to their countries of origin to arrive at "return hubs" in 2027.
    →Five EU countries have decided on the model and timeline of migrant "return hubs"
    →The "Group of Five" consisted of Germany, Denmark, Austria, Greece and the Netherlands
    →Danish migration minister said that the first irregular migrants will be transferred to partner countries outside EU in 2027
    →The new framework approved earlier this year will create facilities for migrants who cannot be deported to their country of origin
    →Source։ Euractiv
    read
    Education PolicyHuman RightsNational PoliticsEmanuel RingelblumHolocaustMemoryNazi GermanyOneg Shabbat GroupPolish JewsWarsaw GhettoWarsaw Ghetto Archive

    Warsaw Ghetto Archive Marks 80 Years

    Eighty years after the first part of the Ringelblum Archive was recovered from the ruins of the Warsaw Ghetto, its documents preserve Jewish voices from the Holocaust - and continue to raise questions about memory and responsibility in Poland.
    →Historian Emanuel Ringelblum and the underground Oneg Shabbat group secretly collected testimonies, diaries, letters and other documents recording Jewish life and persecution under Nazi German occupation
    →As the Holocaust intensified, members buried the collection underground. On 18 September 1946, the first ten metal boxes were recovered from the ruins of Warsaw; another part was found later, while a third remains missing
    →Nazi Germany organised and carried out the Holocaust, but historians have also documented cases of individual Poles participating in the persecution and murder of Jews - a difficult part of Poland’s wartime history that remains politically sensitive
    →Warsaw is marking the 80th anniversary with exhibitions, a scientific seminar and a ceremony on 18 September. The commemorations also explore questions of memory, responsibility and the meaning of testimony today
    →Sources: Jewish Historical Institute Warsaw⁠, POLIN Museum of the History of Polish Jews⁠, DIE ZEIT⁠
    →Transparency Note: Use of AI
    read
    Economic PolicyMonetary PolicySecurityEuropean Central BankIran

    ECB Further Raises Interest Rates as Iran War Fuels Inflation

    The European Central Bank increased interest rates for the first time in nearly three years, citing inflationary pressures linked to the Iran war and rising energy prices.
    →Update (11.09.2026): Analysis: Can ECB rate hike stop energy-driven inflation shock? (Euronews⁠)
    →Update (10.09.2026): News: ECB raises interest rates to 2.5% as inflation spikes (Euractiv⁠)
    →Update (01.09.2026): News: Eurozone inflation hits three-year high (Euractiv)
    →Quick Brief:
    →ECB raised its deposit rate by 0.25 percentage points to 2.25%
    →Inflation reached 3.2% in May, above the ECB’s 2% target
    →Rising energy costs linked to the Iran conflict drove the decision
    →The ECB cut its eurozone growth forecast to 0.8% and warned of continued uncertainty
    →Source: DW
    read
    All briefings Weekly Briefing on Instagram
    September 16, 2026
    byTizian Stocker
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