ÉVIAN-LES-BAINS, FRANCE — Leaders from G7 nations are meeting in Évian-les-Bains, France, to develop a coordinated approach to Chinese trade practices. French officials aim to create a plan addressing these practices after the summit.

French President Emmanuel Macron said, "Chinese exports are literally killing a large part of the European industry" and added that Europe was "slow to see that." Economist Maurice Obstfeld said, "China's export surge, unless its leaders rein it in, will provoke a protectionist wave against Chinese imports worldwide. All the more so if the current disruptions around the Iran war persist and cause a sharper global slowdown." He added, "The leadership has long said this is a goal, but they have been slow to act as if they mean it."

China recorded a global trade surplus of $1.2 trillion in 2025. Chinese exports to the European Union increased by 16.4% from January to May compared to the previous year. France's trade deficit with China increased to $5.3 billion from $3.3 billion a year earlier. Additionally, China exports more goods to Germany than it imports from Germany.

Economist Eswar Prasad said, "The second China shock is characterized by its companies running the board on manufacturing exports — from low-tech, low-wage to high-tech high value-added industries. This is directly hitting advanced economies where it now hurts the most." Chinese goods exports to the United States decreased by 37% from January through April 2026 compared to the same period in 2025. China has redirected exports from the United States to markets in Europe and Asia.

Germany's economy contracted in 2023 and 2024 and grew by 0.2% in 2025. Obstfeld also stated, "The result is an excess domestic supply of manufactured products, which must be exported abroad."