EU trade chief opens Beijing talks, calls China trade deficit ‘unsustainable’

EU trade commissioner Maroš Šefčovič began two days of talks in Beijing on Thursday, October 8, saying the bloc wants to rebalance a trade deficit with China he called ‘unsustainable’. The talks matter to European businesses seeking access to the Chinese market and to industries that depend on Chinese supplies of critical materials. No agreement was established as the discussions opened.

‘Day one in China, with one goal: begin rebalancing our ... unsustainable trade deficit,’ Šefčovič said on X, according to AFP. He said he had started by hearing from EU businesses in China, whose message was a need for better access to the Chinese market and stronger economic security.

What the EU wants from the Beijing talks

The EU has identified three priorities, AFP reported: addressing rising imports in strategically important sectors, increasing European exports to China and improving access to critical raw materials. Those goals cover both the goods European companies sell in China and the materials European manufacturers need to obtain from it.

AFP, citing European figures, reported that China exported about €1 billion more in goods and services to the EU each day last year than the EU exported to China. The scale helps explain Šefčovič’s focus on rebalancing trade, though the daily figure is a measure of the reported gap, not a proposed target for these talks.

Šefčovič had previously said he wanted tangible results by October, AFP reported. That ambition gives this round of talks a near-term test: whether the two sides can identify specific changes they are prepared to make. The report did not establish that a commitment had been reached on market access, export licensing or vehicle shipments.

How China has responded to European trade pressure

Chinese Foreign Ministry spokesperson Mao Ning said on Thursday that Beijing hoped to work with Brussels ‘in the same direction’ and address each side’s concerns through dialogue and consultation, according to AFP. She said openness, cooperation and equal dialogue served both China and the EU.

China’s Commerce Ministry separately responded to reports that France and Germany had sought stronger EU trade defence tools. In its October 8 statement, the ministry urged the two countries to support open cooperation and free trade, observe World Trade Organization rules and avoid encouraging what it called protectionist tools. It also warned against politicising economic and trade issues.

The ministry’s statement addressed the French and German proposal, rather than announcing an outcome from Šefčovič’s meetings. AFP reported that the leaders of France and Germany had called for a credible EU instrument to respond quickly to any escalation by Beijing. The proposal was expected to be discussed at an EU leaders’ summit the following week; the available account did not say it had been adopted.

What remains unresolved

EU and Chinese officials had been negotiating since June, AFP reported. The Beijing visit therefore follows months of discussions rather than starting the dispute from scratch. It brings the EU’s concerns about its trade imbalance, Chinese exports and access to raw materials into a fresh round of direct talks.

The positions reported so far leave several questions open. The EU wants better access for its exporters and more predictable access to critical materials, while China has argued for consultation and warned against protective measures. Neither side’s stated preference establishes what licensing changes, export limits or market-access commitments it might accept.

Analysts quoted by AFP were cautious about the prospect of a broad agreement during this round. One suggested that a sector-specific arrangement restraining exports could be a useful step if the sides could identify a suitable sector. That was an assessment of a possible path, not a report of a deal. The measure of the talks will be any concrete commitment the governments subsequently announce.