MNI BRIEF: China EU Export Boost Underlines 'Redirection Risk'

China’s exports into the European Union increased by EUR 34 billion in the first months of 2025, a number that while not extraordinary, underlines the risk of a redirection of production into European markets, Bank of Italy Governor Fabio Panetta said on Tuesday. 

The rise of products largely affects high tech sectors and, in addition to that, the appreciation of the euro is significantly eroding the price competitiveness of European products, Panetta said. In 2024, total EU-China trade was EUR732 billion, with a Chinese surplus of EUR304.5 billion, Eurostat data shows.

The BOI estimates that the direct effects of U.S. tariffs on Italian exporters and their supply chains remain limited overall, but it should not underestimate the impact on individual sectors or indirect effects. (see MNI SOURCES: ECB In 'Wait And See' Mode, Risks Still Tilt Down )