European Trade Commissioner Maroš Šefčovič has kicked off crucial two-day negotiations in Beijing aimed at rectifying the European Union’s staggering trade imbalance, which currently sees the bloc running a €1 billion-a-day goods deficit with China. Representing the final stretch of an initiative launched in June to reset bilateral economic ties, the meetings hinge on whether Chinese Commerce Minister Wang Wentao will agree to substantial concessions. Should diplomacy fail, Brussels has signaled its readiness to implement unilateral trade restrictions, putting EU resolve to the test.
The primary friction point centers on the automotive industry, where Chinese shipments—particularly booming plug-in hybrid electric vehicles that escaped the heavy countervailing duties placed on battery EVs in 2024—are eating into domestic market share. In response, European negotiators are exploring safeguard measures mixing quotas and tariffs. Furthermore, the chemical sector is slated for scrutiny, with Industry Commissioner Stéphane Séjourné announcing plans to introduce targeted restrictions on plastics and composite materials upon request from member states.
Šefčovič arrived in Asia bolstered by strong backing from the leaders of the EU’s two largest economies, France and Germany. In a joint push, President Emmanuel Macron and Chancellor Friedrich Merz urged granting the Commission broader authority to bar market access to goods originating from countries that distort fair competition. While explicitly unnamed, the target of this proposed trade defense mechanism was unmistakably China. Despite this unified political backing, diplomats and experts maintain low expectations for an immediate breakthrough. Beijing remains heavily reliant on external sales to sustain economic momentum amid sluggish domestic consumption and a protracted property slump, leaving Chinese authorities with minimal room for compromise.
