EU sets October deadline for 'tangible' results with China

EU Trade Commissioner Maroš Šefčovič announced on Monday that the European Union will seek to achieve "tangible" results through dialogue with China by October. Šefčovič made the statement after meeting his Chinese counterpart, Wang Wentao, in Brussels for talks that extended into the evening. Tensions between Brussels and Beijing have escalated in recent weeks, with China repeatedly threatening retaliation against EU measures to protect its market from Chinese overcapacity.

"Today's discussions were intensive, focused, and constructive," Šefčovič told reporters. "My objective from the outset has been clear: to begin balancing the trade relationship between the European Union and China." The EU faces a record trade deficit with China, reaching €1 billion per day across the bloc, making engagement with Beijing a top priority. EU member states gave the European Commission a mandate at the mid-June summit to conduct a dialogue with Beijing aimed at rebalancing trade relations.

Šefčovič added that both sides would intensify their dialogue and that he would travel to Beijing this autumn to assess progress. "Our teams have a clear mandate and an ambitious timetable to deliver tangible results by October this year," he said. Access to the EU market has become an issue for China after the European Commission presented a bill in March favoring made-in-Europe products in public procurement. Conversely, EU businesses face increasing difficulties accessing the Chinese market.

In a joint statement on Monday, Brussels and Beijing agreed that increased market access measures and initiatives could help balance trade relations. They also planned to establish a joint monitoring mechanism to track trade flows using the same data. During his visit, Wang met with German Federal Minister for Economic Affairs Katherina Reiche, whose ministry expressed hope to leverage shared interests and mutual benefits. "Open markets require a level playing field, reliable supply chains, and balanced trade relations," the ministry stated.

Data released last autumn showed a record €87 billion German trade deficit with China, serving as a wake-up call for Berlin, which had previously been cautious to preserve market access for its companies. Competition with Chinese rivals is fierce, particularly for Germany's automotive industry, which has announced over 100,000 job cuts in the coming years. Europe is walking a tightrope: defending the EU market from cheap Chinese imports and unfair practices while fearing Chinese retaliation, including potential restrictions on rare earth exports critical for green technology and defense. EU leaders have asked Commission President Ursula von der Leyen to review existing trade defense instruments and consider new ones. A diversification mechanism is being developed to encourage EU businesses to diversify suppliers, and a solidarity mechanism is under consideration to aid countries most affected by Chinese competition.