EU and China commit to dialogue to tackle trade frictions after a meeting in Brussels, addressing imbalances and future cooperation.
The European Union and China pledged to address growing trade frictions through dialogue after senior officials met in Brussels, reports Agence France-Presse.
EU trade commissioner Maros Sefcovic stated that the current imbalance is unsustainable, with Chinese exports to Europe rising while European market share in China shrinks. He emphasized that 'the status quo is not an option' following talks with Chinese commerce minister Wang Wentao.
Both sides agreed to continue dialogue, share data, and monitor flows to prevent disputes from escalating. Mr. Sefcovic mentioned that Mr. Wang assured him that rare earth export controls would not disrupt EU supply chains. The two men are scheduled to meet again in October in China.
The EU's trade deficit with China reached approximately EUR360 billion (US$411 billion) in 2025, prompting leaders to instruct the commission to pursue talks while preparing stronger defense measures. Brussels is concerned that cheap Chinese goods, supported by heavy state subsidies, could undermine European industries.
OECD data indicate that Chinese firms received three to eight times more government support than companies in member states between 2005 and 2024. The EU has already implemented tariffs and safeguard measures and is drafting new rules to enforce diversification in critical sectors such as chips and rare earths.
The bloc has doubled duties on foreign steel and imposed tariffs on Chinese-made electric vehicles, yet it still hopes to avoid a trade war with its second-largest trading partner. Beijing has previously retaliated with duties on European cognac and investigations into pork and dairy, leaving EU capitals cautious.
