Germany Pushes Broader EU Curbs on China as Trade Surplus Heads for Record

By Roberto Attuch October 14, 2026 · 8:22 AM BRT · 0 comments

Berlin seeks caps beyond hybrids, targeting chemicals and mechanical engineering
China’s surplus jumps 36.3% in September to $133.5B, set to top 2025 record
Aramco headquarters hit as Houthis escalate attacks on Saudi Arabia
ASML climbs on AI-driven demand; CPI report looms; Wunsch flags ECB hikes

Germany is preparing to press the European Union to impose additional restrictions on Chinese imports extending well beyond hybrid vehicles, with chemicals and mechanical engineering among the sectors under consideration, according to people familiar with the matter.

The push lands as China’s trade surplus surges toward an unprecedented scale. September exports exceeded expectations dramatically, with the monthly surplus widening 36.3% to $133.5 billion against forecasts of 25.7%, putting the annual figure on track to eclipse the record $1.2 trillion recorded in 2025. The ballooning imbalance is likely to intensify pressure in Brussels for defensive measures.

Geopolitical risk escalated sharply in the Middle East, where Houthi forces stepped up attacks on Saudi Arabia, striking Aramco’s headquarters. The assault marks a significant escalation against the kingdom’s principal economic asset and threatens to reintroduce a supply-risk premium into energy markets.

Against that backdrop, a bright spot emerged in Europe’s technology supply chain. ASML Holding NV rose as much as 3.5% in Amsterdam after the company said it will be unable to fulfill orders in 2027 and 2028 owing to the intensity of artificial-intelligence-driven demand — a signal of the durability of the capital-expenditure cycle underpinning chipmakers.

Investors now turn to the session’s central event: the release of the US consumer price index. Ahead of the print, European Central Bank Governing Council member Pierre Wunsch said the ECB will probably have to raise interest rates again, adding a hawkish undertone to an already strained rates outlook.

Markets at a Glance

Equities: European benchmarks advanced 0.5%, lifted by gains in semiconductor-equipment names. In Asia, Japan and Hong Kong slipped 0.2%, while mainland China fell 1.4%.
US Futures: Contracts pointed to a steady open as traders positioned ahead of the CPI report.
Commodities: Brent crude rose 1% to $106.50 a barrel, with Middle East supply risks back in focus after the strike on Aramco.
Rates: Wunsch’s comments reinforced expectations that the ECB may tighten further, keeping upward pressure on European sovereign yields ahead of the inflation data.