EU trade chief opens Beijing talks as bloc presses China over trade imbalance

EU Trade Commissioner Maroš Šefčovič opened two days of trade talks in Beijing on Thursday, 8 October, meeting Chinese Commerce Minister Wang Wentao as the bloc pressed for progress on its trade imbalance with China. The discussions matter to European businesses seeking access to the Chinese market and to industries concerned about competition from imports; no agreement had been reported as the visit began.

Šefčovič described the deficit as ‘unsustainable’ and said his first day in China was aimed at beginning to rebalance it. After speaking with representatives of EU companies in China, he said their message was the need for better access to the Chinese market alongside stronger economic security. He said it was crucial for the talks to produce tangible outcomes.

How large is the EU-China trade imbalance?

According to European figures cited by Deutsche Welle and Agence France-Presse, China exported roughly €1 billion more in goods and services to the EU each day last year than it imported from the bloc. That figure describes the reported scale of the imbalance, not a target agreed by negotiators or a measure of progress from this week's meetings.

European businesses and officials have raised concerns about access to China's market and about competition from Chinese exports. Some in Europe attribute that competition to state subsidies and price dumping, allegations Beijing rejects. Those competing accounts are part of the dispute the negotiators face; the available reporting does not resolve whether particular practices caused the deficit.

What each side wants from the Beijing talks

Rare earths are one practical concern. According to AFP, the EU wants clearer arrangements for export licences covering rare earths and other materials after China introduced restrictions last year. Uncertainty over access to those supplies is one reason the wider trade relationship matters to European industry beyond the headline deficit.

Hybrid cars are another point of contention. AFP reported that Brussels hopes to manage Chinese exports through voluntary limits, including on hybrid cars shipped to the bloc, while Beijing opposes import quotas. DW reported that China had rejected calls to limit the vehicles' fast-growing exports voluntarily. The accounts point to a live disagreement over how imports should be handled, rather than a settled arrangement.

China's foreign ministry called for the differences to be handled through dialogue. Spokesperson Mao Ning said openness, cooperation and resolving economic and trade differences through equal dialogue and consultation served the interests of both China and the EU. Beijing's response did not announce a concession on market access or import limits.

What happens after the two-day visit?

The talks come as France and Germany seek a stronger EU response to potential trade escalation. AFP reported that their leaders called for a ‘credible instrument’ that could allow a rapid response, with the proposal expected to be discussed at an EU leaders' summit next week. That debate is separate from any outcome of Šefčovič's meetings in Beijing.

Bernd Lange, who chairs the European Parliament's trade committee, said the EU has tools to counter what he described as unfair subsidies, dumping, discriminatory procurement and economic coercion. He argued that those instruments should be applied consistently and strengthened where needed. His comments indicate pressure within Europe for a firmer response, while the commissioner pursues talks with Chinese officials.

Analysts quoted by AFP cautioned against expecting a broad agreement this week. Ignacio Garcia Bercero of the Bruegel think tank said an agreement to test export restraint in one sector would be a useful step; economist Zhu Tian said agreements on specific issues might be possible. Those are assessments of possible outcomes, not reports that either side has accepted a proposal.

The immediate test is whether the two-day visit produces a concrete result before it ends on Friday, 9 October. The reporting available as talks opened establishes the meeting, the issues on the table and both sides' public positions. It does not establish a final communiqué, an agreement on hybrid cars or a change to the trade imbalance.