Brussels seeks 'credible' outcome in EU-China talks after key negotiators’ call

The European Commission escalated its push for China to deliver concrete outcomes from their EU-China trade dialogues on Thursday, following a one-hour video conference between Trade Commissioner Maroš Šefčovič and his Chinese counterpart, Wang Wentao. The EU aims to achieve a trade balance with China, which has been widening by €1 billion daily, but Beijing is seeking market access for its 450 million consumers and resisting reductions in its exports.

The EU Trade and Investment Council, launched in June, aims to produce tangible results by October, with Šefčovič co-chairing the second session in Beijing. The discussions covered market access on both sides and the contentious issue of China's control over rare earth exports, a critical resource for EU industries. EU officials are scheduled to travel to China for further negotiations before Šefčovič's trip on October 8-9.

European Commission President Ursula von der Leyen emphasized the need for "deeds, not words" in these talks, vowing to utilize all available trade defense mechanisms to rebalance the trade relationship. China is also anticipated to be a focal point during the EU leaders' meeting in October. The EU has several trade defense tools at its disposal, including anti-dumping duties and tariffs on unfair subsidies, and is also developing a diversification strategy to lessen dependence on Chinese critical minerals.

This strategic shift aims to strengthen EU firms' supply sources for strategic technologies, coinciding with strained EU-China relations due to the Commission's market protection proposals, which have provoked China's threat of retaliatory measures. In May, China also requested its companies to halt cooperation with the EU in antitrust investigations following the opening of an EU probe into JD.com's e-commerce practices.