Former top European official adopts bullish tone on China-EU trade talks as deadline nears

Former EU official sees promising future in China-EU trade talks, as deadline looms closer. Charles Michel, who led the European Council from 2019 to 2024, expressed optimism during a press conference in Shanghai on Monday. Both the EU and China are eager to find common ground through ongoing negotiations, Michel stated. He predicts that by the end of 2023, progress will be made in four key areas: trade and investment, export controls, intellectual property rights, and World Trade Organization reform.

These topics were initially discussed in June, when Brussels set a three-month deadline for improving trade relations.

Michel emphasized that China requires access to European markets, emphasizing the significance of EU market access both politically and economically. The bloc is using this leverage in negotiations with Beijing. In September, European Commission President Ursula von der Leyen plans to announce new measures to rebalance ties with China, which will be discussed at a summit in Brussels in October.

In July, European exports of low-value goods to the EU decreased by 54% in value and 40.8% in volume after a new tax of €3 was imposed on packages worth less than €150.

However, anti-subsidy tariffs on Chinese-made electric vehicles have not been effective in reducing their sales. In July, China's EV exports to France increased by 365.5%, and to the Netherlands by 530.9%. While Germany, Europe's automotive hub, saw a 40.8% increase in EV imports from China in July compared to the previous year.

The European Commission and China agreed in January to replace tariffs with individual price undertaking agreements with Chinese carmakers through negotiations. Michel believes this minimum price mechanism represents progress, though its implementation may prove complex.