China trade talks test EU’s appetite for tougher action
Trade Commissioner Maroš Šefčovič is seeking concessions from Beijing to narrow a record trade deficit, but expectations of a breakthrough are low.
EU Trade Commissioner Maroš Šefčovič led two days of trade negotiations in Beijing to address the EU’s significant trade deficit with China. Failure to reach an agreement could test Brussels’ willingness to impose stricter trade restrictions. The talks, the final round of an effort initiated in June, will depend on whether China’s Commerce Minister, Wang Wentao, is willing to make significant concessions.
If no deal can be reached to narrow the €1 billion-a-day deficit, Brussels and Beijing may face a conflict. EU leaders will review the outcome at a Brussels summit next Thursday. Šefčovič emphasized the need for tangible results, focusing on cars, where Chinese exports are gaining market share due to the popularity of plug-in hybrid electric vehicles.
European negotiators have been urging China to limit exports of such vehicles. The EU is also considering safeguard measures, such as quotas and tariffs, to protect European automakers. Chemicals are another area under scrutiny, with the Commission planning targeted safeguards on plastics and composite materials. EU leaders, including France’s President Emmanuel Macron and Germany’s Chancellor Friedrich Merz, have called for the Commission to be given more authority to restrict imports from countries that distort the single market.
While China faces pressure from unfair subsidies and EU dependence on Chinese raw materials, it is reluctant to make substantial compromises, fearing retaliation and losses in global markets.
Written by urgent.news from Politico EU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
