EU, China Launch 4 Trade Workstreams as €360.6 Billion Imbalance Hardens Brussels' Stance
Updated
Updated · Al Jazeera English · Jun 30
EU, China Launch 4 Trade Workstreams as €360.6 Billion Imbalance Hardens Brussels' Stance
3 articles · Updated · Al Jazeera English · Jun 30
Summary
Brussels and Beijing agreed Monday to open four trade workstreams and set up a joint monitoring mechanism after talks between EU trade chief Maros Sefcovic and Chinese Commerce Minister Wang Wentao.
€360.6 billion — China’s 2025 trade surplus with the EU, up 15% — drove the push, with Sefcovic warning that rising Chinese exports and Europe’s shrinking market share in China are "not sustainable."
Chinese pressure is hitting core EU industries: tariffs of up to 35.3% on Chinese EVs have not stopped brands such as BYD, and Chinese models topped 10% of EU auto sales in May.
European policymakers are preparing tougher defenses from July 1, including lower duty-free steel quotas and a €3 customs charge on small parcels, while weighing broader curbs on Chinese access to critical sectors.
Both sides still signaled they want to avoid a full trade war, with the next negotiation round set for October even as Europe hardens its industrial policy toward China.
Is this EU-China clash the tipping point where global free trade gives way to a new era of warring economic blocs?
With China dominating green tech, can the EU save its industries without derailing its own climate agenda?
The €1 Billion-a-Day EU-China Trade Gap: Systemic Challenges, Strategic Responses, and Global Repercussions
Overview
The report explores the growing trade deficit between the EU and China, highlighting how China’s continued focus on production and exports—despite promises to boost domestic consumption—fuels this imbalance. EU exports to China are heavily concentrated in a few industrial sectors, making them vulnerable to policy shifts and market changes. Both sides recognize the need for cooperation and reform within the World Trade Organization to address these challenges. However, systemic issues like export controls on critical materials and barriers to intellectual property rights enforcement create further risks, prompting the EU to consider stronger strategic responses and trade defenses.