Key trade representatives from China and the European Union concluded two days of talks to address escalating tensions over significant trade imbalances between the two major economies. EU trade chief Maroš Šefčovič visited Beijing and stressed the need for “tangible outcomes” to rebalance trade between China and the 27-member bloc. However, it remains unclear whether both sides are prepared to address the fundamental factors driving China’s growing trade surplus, which reached €360 billion last year.
China has called on the EU to lift its restrictions on imports of advanced computer chipmaking machinery, which the United States imposed on national security grounds. Šefčovič said these discussions mark the culmination of three months of intensive preparation and set an October deadline for meaningful results in trade rebalancing.
Earlier in the week, the Chinese Ministry of Commerce urged the EU to avoid protectionist measures, warning that such actions could have adverse effects. Trade tensions have escalated in recent months, with both sides implementing or considering restrictions on each other’s imports. The EU has begun limiting imports of Chinese-made electric vehicles and batteries, while also enacting measures to safeguard its steel industry. Additionally, the EU has restricted duty-free imports of small parcels from e-commerce, primarily targeting Chinese fast fashion companies.
Last week, China announced an anti-dumping investigation concerning imports from the EU of p-nitrotoluene, a chemical compound utilised in dyes and pharmaceuticals. Chinese officials and businesses have expressed concern over reports that some EU member states are pushing new protective measures for their local industries.
Apprehensions about surging Chinese exports to Europe and other regions, often called “China shock 2.0,” have intensified, particularly as the United States has raised tariffs and implemented other measures under the current administration to address its significant trade deficit with Beijing.
Despite backlash from some trading partners, China’s global trade surplus reached $1.2 trillion in 2025 and is expected to exceed $1 trillion again this year. The EU’s trade deficit with China expanded to €103.34 billion in the April-July quarter, as imports from China rose to €153.63 billion. In comparison, EU statistics show that European exports to China rose to €50.3 billion.
This article used information from The Associated Press.
