EU Declares Trade Relationship With China 'Not Sustainable' as Tougher Measures Loom

The European Commission warned on Friday, May 29, 2026, that its trade and investment relationship with China is "not sustainable," signaling the bloc will consider tougher measures to address growing imbalances. The statement followed a meeting of EU commissioners focused on surging Chinese imports that have undercut European industries and Beijing's increasing shift toward domestic suppliers. The commission said further discussions will take place in June at the Group of Seven summit and an EU leaders' meeting. The issue has divided member states. German Economy Minister Katherina Reiche cautioned that any EU measures must not hamper European exports to China, while a bloc backed by France, Italy, the Netherlands, Spain and Lithuania proposed a new cross-sector trade defense tool. China warned ahead of the meeting that any fresh export curbs would trigger countermeasures, raising the risk of broader trade friction.