October deadline for China talks 'not realistic at all', chief trade MEP says
Bernd Lange, chair of the European Parliament's trade committee, has called the October deadline for tangible results in EU-China trade talks unrealistic if a binding agreement is sought. He stressed the need to address unfair subsidies, which constitute 4.5% of China's GDP, and noted that the EU's dependence on rare earths is manageable.
The European Union's efforts to rebalance trade with China are hitting a roadblock, as the chief trade MEP says the October deadline set by the European Commission is unrealistic for a binding deal. Bernd Lange (S&D, Germany), chair of the European Parliament's trade committee, told Euronews on Friday that while discussions are good, agreements are better. He argued that a framework could be agreed by October, but a full legal text is not feasible.
The EU is facing a trade deficit of €1 billion per day with China, threatening hundreds of thousands of jobs. Negotiations began last Monday, with EU Trade Commissioner Maroš Šefčovič setting October as the target for "tangible results." Lange expressed pessimism, emphasizing that unfair subsidies are a top priority. He noted that about 4.5% of China's GDP is used for illegal subsidies, giving an unfair competitive advantage.
European industries are increasingly reporting dumping and subsidy cases. In the steel sector alone, the EU has adopted 80 measures against low-cost Chinese imports. However, the EU's leverage is limited by its dependence on rare earths, essential for green tech, automotive, and defence. Last year, shortages occurred after China restricted exports during its trade war with the US.
Lange downplayed the threat, stating that the blockade was a reaction to the US and that the licensing system for European companies has improved. He added that the EU's dependence on China for rare earth processing stems from European companies relocating to China for lower costs. The real issue is processing and refining, and Lange urged finding a second supplier quickly.
