EU Trade Commissioner Maroš Šefčovič opened two days of talks in Beijing on Thursday, October 8, seeking to narrow the European Union’s roughly €360 billion goods-trade deficit with China and avert stronger protectionist measures.
Šefčovič is meeting Chinese Commerce Minister Wang Wentao after months of negotiations intended to produce “tangible outcomes” by October. The deficit, equivalent to about €1 billion a day, has intensified European concerns about lost market share, industrial decline and potential job losses. EU officials and lawmakers have blamed Chinese state subsidies, overcapacity and restricted access to China’s market for worsening the imbalance.
The talks are also expected to address China’s expanding exports of plug-in hybrid vehicles, which are putting additional pressure on European automakers. Brussels is seeking voluntary limits or other assurances, while considering import quotas and tariffs if negotiations fail. Rare-earth supplies and other critical minerals are another major issue because European manufacturers rely heavily on Chinese-controlled supply chains.
France and Germany have urged the EU to develop a rapid-response instrument against economic coercion, and European lawmakers recently backed a tougher approach toward Beijing. China has warned against protectionist policies but says the dispute should be handled through dialogue and consultation. The outcome will be reviewed by EU leaders at a summit scheduled for October 15–16, where Brussels could consider additional trade defenses if the Beijing meetings produce little progress.