EU pushes for trade balance with China as Chinese air-conditioner demand spikes in Europe
Amid an unprecedented heat wave, Europe’s demand for Chinese-made air conditioners is rising sharply, complicating the bloc’s effort to narrow its trade deficit with China before October.
Europe’s record heat wave is driving a surge in imports of Chinese-manufactured air conditioners, highlighting the difficulty the European Union faces in reducing its trade deficit with China. On Monday, EU trade chief Maroš Šefčovič and China’s commerce minister Wang Wentao issued a joint statement committing to tangible results by October and establishing a bilateral working group to monitor trade flows. The parties also sought reassurance that existing export controls on rare-earths and permanent magnets would not disrupt EU supply chains.
"Not everything will be solved, not everything will be fixed, but we think that between now and October, our teams have sufficient time to deliver the tangible results," Šefčovič told reporters.
The EU’s goods deficit with China widened 15% to €360 billion last year and reached €98 billion in the first quarter, the highest level since 2022. Electrical equipment and machinery are among the most imported categories, and air-conditioner sales are adding to the imbalance. Midea Group reported that orders for its PortaSplit portable split system have exceeded 200,000 units this year, roughly double the pace in 2025, while a German-run website tracking inventory showed many units out of stock.
Chinese brands now hold about 32% of the European air-conditioner market by retail volume, according to Euromonitor International, with Haier, Gree and Midea leading. The PortaSplit design complies with fragmented European building regulations by classifying the outdoor unit as furniture and keeping refrigerant charge just below France’s 2-kilogram limit.
Industry analysts warned that the growing share of Chinese technology products in EU imports poses a strategic risk. Denis Depoux of Roland Berger said the trend represents “an inversion of the past decades and can be a financial systemic problem for the Union,” while noting the joint statement as a positive step.
The European Commission reiterated that the status quo is unsustainable and signaled targeted measures in sectors where Chinese competition could cause serious harm or create dependency risks, particularly in rare-earths, chemicals, autos and heavy machinery. Andrew Small of the European Council on Foreign Relations emphasized that any response would focus on specific areas rather than across-the-board tariffs.
Negotiators on both sides acknowledge that avoiding retaliatory measures will be essential for maintaining stable trade relations.
