European Trade Commissioner Maroš Šefčovič has arrived in Beijing to hold discussions regarding the European Union’s (EU) widening trade deficit with China. Šefčovič is scheduled to meet with Chinese Commerce Minister Wang Wentao on Thursday and Friday. Ongoing discussions over the past few months have focused on the EU’s trade deficit—exceeding €1 billion daily—and China’s restrictions on the export of rare earth elements and other critical minerals. Al Jazeera reported this development. Meanwhile, Chinese companies are posing an increasingly significant challenge to Europe’s leading automakers. The Financial Times reported on Wednesday that, prior to the talks, Beijing rejected an EU request to voluntarily limit exports of Chinese hybrid vehicles.
Citing two diplomats, the report stated that the European Commission might now urge China to accept a proposal for unilaterally limiting hybrid vehicle imports. These two-day talks commence at a time when a majority of EU lawmakers have called for tougher trade policies against Beijing; a non-binding resolution to this effect was passed on Wednesday. Conversely, China’s Ministry of Commerce has stated that if the EU imposes restrictions on Chinese companies or products, Beijing will respond firmly to protect its own industries.
On Tuesday, leaders from the EU’s two largest powers—French President Emmanuel Macron and German Chancellor Friedrich Merz—urged the bloc to establish a credible mechanism capable of swiftly countering actions by nations that harm the EU economically. This new mechanism would not target any specific country. German officials stated that the EU requires a tool as potent as the “Section 301” tariffs imposed by the United States or China’s restrictions on critical mineral exports.
The proposed mechanism is expected to be discussed at the EU leaders’ summit next week. If approved, the European Commission will be able to take countermeasures against commercial aggression within a few days. China, however, has urged France and Germany to refrain from protectionist measures.
