China's Record Export Surge Puts Europe on Alert as EU Leaders Seek New Trade Weapons

BRUSSELS/BEIJING/TOKYO: China's export machine is running at full speed, and Europe is worried.

A Record Surge

China's September exports rose 36.3% from a year earlier, and its trade surplus reached $133.53 billion, The Straits Times reported. China's surplus with the European Union hit $34.8 billion for the month, slightly more than its $34.01 billion surplus with the United States.

IMF Managing Director Kristalina Georgieva said China needs to shift away from export-led growth and toward domestic consumption.

EU Leaders Look for New Trade Weapons

EU leaders meeting in Brussels are set to tackle Chinese exports, energy prices and the bloc's budget, Reuters reported. According to the South China Morning Post, leaders plan to "urgently" call for new tools to deal with the "China shock," even after a surprise deal with Beijing to limit Chinese hybrid car imports.

Reuters also reported that Germany has made a U-turn on China imports, and that EU countries have asked for an investigation into imports of PET plastic. That probe is expected to begin soon.

Japan Protests Island Visit

In Asia, tensions flared over a long-running territorial dispute. Japan's Foreign Minister Toshimitsu Motegi told parliament that a Chinese delegation's visit to Iturup was "completely unacceptable." Iturup is an island held by Russia but claimed by Tokyo.

Vietnam Turns to Europe

Vietnam is also deepening ties with Europe. It plans to sign a free-trade agreement with the European Free Trade Association (EFTA) in Hanoi on Sunday, October 18. Swiss Economy Minister Guy Parmelin is expected to attend.

What to Watch

China releases its third-quarter GDP figures on Monday, October 19. They will show whether strong exports are boosting the wider economy.

Sources: Reuters, The Straits Times, South China Morning Post, The Rio Times, October 2026.