Top trade envoys from China and the European Union concluded two days of talks aimed at easing escalating tensions over significant economic imbalances between the two major global players. EU trade chief Maros Sefcovic emphasized the necessity of achieving "tangible outcomes" in rebalancing trade with China during his visit to Beijing.
The outcome of the negotiations regarding the factors contributing to China's substantial trade surplus, which reached 360 billion euros ($410 billion) last year, remained uncertain.
China has advocated for the EU to lift restrictions on its imports of advanced computer chipmaking machinery, measures that were implemented on national security grounds at the urging of Washington. Sefcovic described the week's discussions as the culmination of three months of dedicated work, having previously set an October deadline for concrete progress on trade rebalancing.
Earlier in the week, China's Commerce Ministry issued a statement cautioning the EU against protectionist policies, warning of potential repercussions. Trade friction has intensified in recent months, with both sides implementing or considering various import restrictions on each other's goods.
The EU has taken steps to limit imports of Chinese electric vehicles and EV batteries, in addition to enacting measures to safeguard its steel industry. The bloc has also imposed limitations on duty-free imports of small e-commerce parcels, a move largely seen as targeting Chinese fast fashion companies.
In response, China recently initiated an anti-dumping investigation into imports of p-nitrotoluene from the EU, a chemical compound utilized in dyes and pharmaceuticals. Chinese officials and businesses have expressed concern over reports suggesting that some EU member states are considering new measures to protect their domestic industries.
Concerns about a surge in Chinese exports to Europe and other global markets, described by some as a "China shock 2.0," have been amplified as the United States has increased tariffs and other measures to address its considerable trade deficit with Beijing, particularly since the return of former President Donald Trump to the White House.
Despite facing international scrutiny, China's global trade surplus reached an estimated $1.2 trillion in 2025 and is projected to exceed $1 trillion again this year. According to EU statistics, the EU's trade deficit with China widened to 103.34 billion euros (approximately $116 billion) during the April-July quarter, with imports rising to 153.63 billion euros ($172.3 billion) while European exports to China increased to 50.3 billion euros ($56.4 billion).