EU Seeks to Narrow Trade Deficit With China
European Trade Commissioner Maros Sefcovic is heading to Beijing for high-level talks aimed at reducing the European Union’s widening trade deficit with China. Sefcovic will meet Chinese Commerce Minister Wang Wentao on Thursday and Friday following three months of discussions on the EU’s goods trade deficit, which exceeds €1 billion ($1.12 billion) a day. The talks will also address China’s restrictions on exports of rare earths and other critical minerals.
The European Commission is seeking “tangible results” by October, including commitments that can be presented to EU leaders at their October 15-16 summit in Brussels, where relations with China will be a key agenda item. Commission President Ursula von der Leyen has warned that the trade imbalance has reached a tipping point, while EU officials are pushing Beijing to open its market further to European companies. The Commission is also considering measures to limit certain Chinese exports into the EU.
The talks come amid growing concern over the impact of rising Chinese imports on European industries and jobs. EU officials say nearly a quarter of imports are increasing at a worrying pace, particularly in machinery, textiles, basic metals and chemicals. Beijing, however, rejects claims about economic imbalances and industrial overcapacity, arguing that such concerns are being used as protectionist pressure against China. It remains unclear which exports China may agree to curb as negotiations continue.
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