EU Leaders Meet to Tackle China Imports, Energy Costs and Budget Disputes

European Union leaders are gathering in Brussels on Thursday for a crucial summit focused on rising Chinese imports, high energy prices and disagreements over the EU’s next long-term budget.

The meeting brings together leaders from all 27 EU member states as concerns grow over China's expanding exports and their impact on European manufacturing. Industry groups warn that cheaper Chinese products are contributing to factory closures and job losses across the bloc.

The summit follows a recent agreement between the European Commission and Beijing to restrict imports of Chinese hybrid vehicles. However, broader trade tensions remain unresolved, with the EU's goods trade deficit with China reaching €360 billion ($400.4 billion) in 2025 and potentially exceeding that figure in 2026.

EU leaders are expected to urge the Commission to continue negotiations with China while strengthening trade defense measures. A senior EU diplomat warned that thousands of jobs are disappearing each month as economic imbalances persist.

Germany and France have proposed stronger protections against Chinese imports, particularly chemicals and polyethylene terephthalate (PET), a plastic commonly used in packaging. An investigation into PET imports is expected soon.

The proposals represent a significant policy shift for Germany, which previously opposed EU tariffs on Chinese electric vehicles. Beijing, meanwhile, argues that European concerns over trade imbalances are being used to justify protectionist policies.

High energy costs will also feature prominently in discussions about European competitiveness. Draft summit conclusions describe energy prices as critically important and call for additional short-term relief measures.

Among the proposals under consideration is a one-year postponement of EU methane emissions regulations affecting oil and gas imports.

Leaders will also debate the EU's proposed 2028–2034 budget, which requires unanimous approval. Disagreements between countries contributing more to the budget and those receiving greater funding remain substantial. A special summit is scheduled for late November.

Ukraine will dominate Friday's discussions, with President Volodymyr Zelenskiy expected to attend. Leaders will examine Kyiv's financial requirements for 2027 and potentially criticize Washington's temporary suspension of sanctions on Russian diesel.

The talks follow renewed tensions between Zelenskiy and U.S. President Donald Trump, who recently suggested Ukraine should replace its leader.