As of 2025, the goods trade deficit between the European Union and China has doubled since 2020, while it is 3.6 times greater in Germany. One driver of this imbalance may be Chinese currency manipulation, which has allowed Chinese firms to undercut the prices of European retailers.

Fact of the Week: Chinese Currency Manipulation May Be Driving the Trade Surplus Between China and Europe

A study finds that over 99 percent of a sample of 5,260 listed Chinese firms received government subsidies totaling €35.3 billion in 2022, double the amount from 2015.

Fact of the Week: More Than 99 Percent of Listed Firms in China Receive Direct Subsidies From the Chinese Government

A major study from 2016 that found that Chinese imports increased European patent growth up to 30 percent between 1996-2005 had major coding flaws. The correct data show negative & insignificant changes due to Chinese competition.

Fact of the Week: A Major Study that Found that Chinese Imports Increased European Patent Growth Up to 30 Percent Between 1996-2005 Had Major Flaws, Reversing the Result

A new study finds the U.S. share of global manufacturing will fall to 11 percent by 2030, while China’s will increase to 45 percent.

Fact of the Week: A New Study Finds the US Share of Global Manufacturing Will Fall to 11 Percent by 2030

China’s trade surplus has grown from $993 billion in 2024 to $1.08 trillion in the first 11 months of 2025, making it the first country in recorded history to reach the $1 trillion milestone.

Fact of the Week: China’s Trade Surplus in Goods Surpassed $1 Trillion in the First 11 Months of 2025

Fact of the Week: China's Trade Surplus in Goods Surpassed $1 Trillion in the First 11 Months of 2025

The fall in the value-added of foreign inputs as a share of China’s gross exports reflects an increased reliance on domestic production of intermediate goods and services and a shift toward production for domestic consumption.

Fact of the Week: Foreign-Produced Content of Chinese Exports Fell From 21.9 Percent in 2008 to 17.2 Percent in 2018

China is at the global forefront of the electric vehicle (EV) and EV battery industries. Its firms produce nearly two-thirds of the world’s EVs and more than three-quarters of EV batteries. They also have produced notable innovations in EV products, processes, and customer experiences.

How Innovative Is China in the Electric Vehicle and Battery Industries?

Recent years have seen China increase its spending on basic and applied research, which is likely to drive its innovation going forward and could be a large factor behind an eventual Chinese leadership role in global innovation.

Fact of the Week: Chinese R&D Spending Rose More Than 10 Percent in 2019

Chinese electric vehicle makers have benefited from aggressive state-sponsored mercantilist policies that have enabled them to produce lower-cost vehicles than foreign competitors can. They should not be allowed to manufacture their products in the United States.

Fact of the Week: One in Ten Cars Sold in Europe in December 2025 Was Chinese

Related

Fact of the Week: Chinese Currency Manipulation May Be Driving the Trade Surplus Between China and Europe

Fact of the Week: More Than 99 Percent of Listed Firms in China Receive Direct Subsidies From the Chinese Government

Fact of the Week: A Major Study that Found that Chinese Imports Increased European Patent Growth Up to 30 Percent Between 1996-2005 Had Major Flaws, Reversing the Result