EU-China trade talks have begun in Beijing as European Trade Commissioner Maros Sefcovic seeks progress on the bloc’s widening trade deficit and Chinese restrictions on rare earth exports.
Mr Sefcovic is due to meet China’s commerce minister, Wang Wentao, on Thursday and Friday following months of discussions over a deficit that has exceeded €1 billion a day.
The negotiations will also address curbs on exports of rare earths and other critical minerals, as European officials press for commitments that can be presented to EU leaders next week.
EU-China trade talks focus on trade imbalance
Chinese companies are also increasingly challenging Europe’s leading car manufacturers. Beijing has rejected an EU request for voluntary limits on exports of Chinese hybrid cars, while the European Commission is seeking agreement on a unilateral measure to cap imports.
The talks come as a majority of European Parliament members called for a more assertive trade policy towards China in a non-binding resolution.
China’s commerce ministry has warned that it would deliver a “resolute response” to protect its industries if the EU imposes restrictions on Chinese companies or products.
French President Emmanuel Macron and German Chancellor Friedrich Merz have urged the EU to prepare a “credible instrument” that could be activated quickly against countries deemed to have harmed the bloc economically.
The proposed measure would not be aimed at any particular country. German officials have said the EU needs a tool comparable in strength with the United States’ Section 301 tariffs or China’s restrictions on critical-mineral exports.
If approved, the instrument would give the European Commission the power to respond to alleged trade aggression within days. EU leaders are expected to discuss the proposal at a summit next week.
China has urged France and Germany to reject what it called “protectionist” measures.
“We hope that France and Germany, as major economies in the world, will uphold openness, cooperation and free trade,” the commerce ministry said.
“They should avoid going down the wrong path in the wrong way, only to ultimately suffer the consequences themselves.”
EU and Chinese officials have been discussing trade imbalances since June. Mr Sefcovic has said he wants “tangible results by October”, along with a commitment that can be put to European leaders.
Trade relations with China are expected to top the agenda at next week’s Brussels summit. European Commission president Ursula von der Leyen has said the imbalance has reached a tipping point and that Europe will use every available tool to rebalance the relationship.
