The European Union is getting tough on China. Ursula von der Leyen, the head of the EU, says the current trade setup is not working.

Right now, Europe buys way more things from China than it sells to them. This is called a trade deficit. Von der Leyen says this gap has reached a "tipping point." She believes this is unfair and hurts European businesses.

Because of this, she promised that the EU will use all the tools it has to balance things out. She didn't give every detail on what those tools are, but she made it clear that a change is coming.

This isn't just about money. The EU also wants to be more careful about where it gets important materials, like the metals used in batteries and electronics. Right now, Europe relies a lot on China for these things. Von der Leyen wants Europe to find more partners so they aren't stuck if trade gets difficult.

Some experts worry that if the EU pushes too hard, China might fight back. The group Institut Montaigne suggests that China is very good at "escalation dominance." This is a fancy way of saying China knows how to respond to pressure in ways that make it hard for the other side to win.

For now, the message from the EU is clear: the current way of doing business with China cannot stay the same.

Source: Reuters