Stories
China and EU Trade Envoys Meet to Ease Growing Economic Tensions
- •Top trade envoys for China and the European Union concluded two days of high-stakes talks in Beijing aimed at addressing escalating trade imbalances.
- •EU trade chief Maros Sefcovic emphasized the need for tangible outcomes to rebalance trade, while China urged the EU to avoid protectionist measures.
- •China is pushing the EU to lift restrictions on imports of advanced computer chipmaking machines imposed under national security concerns.
- •Recent trade friction includes EU curbs on Chinese electric vehicles, batteries, steel, and e-commerce parcels, alongside Chinese anti-dumping investigations.
- •The EU's trade deficit with China widened to 103.34 billion euros in the April-July quarter amid a soaring global trade surplus for Beijing.
Key Questions Answered
The top trade envoys for China and the EU met in Beijing to calm escalating tensions over growing trade imbalances. EU trade chief Maros Sefcovic travelled to Beijing to seek tangible outcomes in rebalancing trade, noting that the negotiations were the culmination of three months of intensive work. Meanwhile, the EU has implemented measures to protect its steel industry and limit small e-commerce parcels, while China is pushing for the EU to lift restrictions on advanced computer chipmaking machines.
The European Union has moved to limit imports of Chinese-made electric vehicles and EV batteries, enacted measures to protect the European steel industry, and restricted duty-free imports of small e-commerce parcels targeting fast fashion firms. These actions are part of broader efforts by the 27-nation bloc to address its staggering trade deficit with China.
China's growing trade surplus with the European Union hit 360 billion euros, which is approximately USD 410 billion, last year. Furthermore, the EU's trade deficit with China widened further to 103.34 billion euros during the April-July quarter.
