China's trade surplus with Europe hits record high amid increasing disagreements

China's trade surplus with the European Union has risen to a new record level, reaching $32.9 billion in June, marking a 27% year-on-year increase. Chinese exports remain resilient despite weak domestic demand. This imbalance raises concerns about the potential for a trade dispute between the two sides, especially as European fears about China's excess production capacity grow. Despite attempts at engagement, the trade balance remains unachieved, while European and Chinese leaders are seeking to strengthen economic cooperation and reduce restrictions.