EU and China edge towards trade confrontation
A visit by EU Trade Commissioner Šefčovič is intended to lead to new agreements on market access and exports.
The European Union and China will try to contain their trade conflict on Thursday and Friday, but the room for compromise is narrowing. EU Trade Commissioner Maroš Šefčovič will meet Chinese Commerce Minister Wang Wentao in Beijing.
The talks are the second round of consultations on trade and investment between the EU and China. According to the European Commission, the agreements from a first meeting at the end of June will be discussed. The Commission does not describe the talks as a decisive summit and does not want to say in advance which measures will be on the table.
The pressure is mainly due to the EU's growing trade deficit with China. Associated Press reports, based on European figures, that the deficit amounts to approximately €360 billion. European governments fear that subsidised Chinese exports will further undermine the competitiveness of European steel producers, car manufacturers and other industries.
Brussels has already taken measures against Chinese steel imports and small parcels from online shops. Since 2024, tariffs have also applied to certain electric cars from China. France and Germany have asked the Commission to be able to use the European anti-coercion instrument more quickly, allowing trade and investment restrictions to be imposed on countries that exert economic pressure.
China, for its part, stresses that European companies should be given greater access to the Chinese market and that the EU should ease its export restrictions on advanced technology. Beijing presents the talks as a way to expand cooperation in areas including artificial intelligence and the energy transition.
The outcome is also relevant to the Netherlands. Dutch companies depend on Chinese suppliers and markets, while European measures could affect prices, logistics and investment decisions. The Commission says the issue will be placed on the European Council's agenda again next week. Whether the talks in Beijing will lead to concrete agreements remains uncertain.
One story, several perspectives
What is established
- The EU has a large trade deficit with China.
- The EU is examining measures against trade disruptions and Chinese imports.
- China is calling for greater access to the European market and fewer European export restrictions.
Left
Arguments The EU must prevent public support in China from leading to the loss of European jobs and must take labour and environmental standards into account in trade policy.
Values Protection of workers, fair competition and public oversight of multinational trade.
Consequences Without intervention, industrial regions and workers could bear the costs; broad tariffs could, however, affect consumers and people on lower incomes.
Centre
Arguments The EU must reduce strategic dependencies while keeping trade and diplomacy open. Targeted measures and negotiations should be preferred to a broad trade war.
Values Stability, legal certainty and European negotiating power.
Consequences A step-by-step approach could limit economic damage, but it could also prove too slow if competitive pressure increases rapidly.
Right
Arguments Europe must protect its own industry and force China to offer reciprocity. If Beijing exploits the European market without giving European companies comparable access, tough countermeasures are justified.
Values National and European economic resilience, domestic production and strategic autonomy.
Consequences Protection could temporarily give jobs and companies breathing space, but retaliatory measures could harm exporters and consumers.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
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The key facts have been confirmed by the European Commission and Associated Press. Unconfirmed possible measures have been presented as uncertain.
- confirmed Šefčovič is meeting Wang Wentao in Beijing during two days of talks. — The European Commission confirms the visit on Thursday and Friday. source
- confirmed The EU's trade deficit with China amounts to approximately €360 billion. — Associated Press cites this figure based on European trade data. source
- confirmed France and Germany called for simpler deployment of the anti-coercion instrument. — The Commission confirmed the letter and Associated Press described the proposal. source
Editor's note
The visit, the trade talks and the concerns about the deficit have been confirmed. Possible protective measures against Chinese hybrid cars have not been confirmed and have therefore not been presented as a decision.Sources
- EU sends envoy to Beijing as rising exports from China raise economic anxiety — Associated Press
- EU Midday press briefing: bezoek van Šefčovič aan China — Europese Commissie
More on this in Dutch media
- NRC — „china handel”
- NU.nl — „china handel”
- De Telegraaf — „china handel”