The European Union and China are working to rebalance their trade relationship amid months of rising tensions that threaten to escalate into a broader trade war between the 27-nation bloc and the Asian economic powerhouse.
European Commissioner for Trade Maros Sefcovic said on Thursday that both sides were working towards tangible outcomes following three months of intensive discussions. He made the remarks after meeting Chinese Commerce Minister Wang Wentao in Beijing as part of the Trade and Investment Consultations.
“Building on three intensive months of engagement, we're working hard to rebalance EU-China trade,” Sefcovic said in a post on X, sharing a photograph with Wang. He added that delivering concrete results during the first phase of the consultations was crucial.
Earlier on Thursday, Sefcovic described the EU's trade deficit with China, which stands at approximately one billion euros ($1.1 billion) a day, as “unsustainable”.
European manufacturers have faced growing pressure from cheaper Chinese imports, which officials and industry representatives say have contributed to job losses across the continent. Several European stakeholders have accused Beijing of unfair trade practices, including extensive subsidies to domestic companies, price-dumping and currency manipulation.
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However, the EU faces challenges in taking a tougher stance against China, given its reliance on the country for critical supplies. Beijing could restrict exports of essential materials, including rare earth minerals, or introduce barriers affecting European businesses seeking access to the Chinese market.
China also has significant economic interests at stake. The country has increasingly relied on exports to support economic growth amid persistent weakness in domestic demand.
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Bernd Lange, chair of the European Parliament's trade committee, said before Sefcovic's visit that China's economic difficulties could strengthen the EU's negotiating position. He described the situation as an “economic crisis in China”, arguing that it gives the bloc additional bargaining power.
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The discussions come as both sides seek to address longstanding trade imbalances while protecting their economic interests. The outcome of the consultations could influence future trade relations between the EU and China, with businesses across both markets closely watching developments.