EU Seeks Early October Commitments From China on Trade Imbalance

The European Commission is set to press China for concrete commitments to address the widening trade imbalance between the two economies, with an initial deadline set for early October. European Trade Commissioner Maros Sefcovic stated on Tuesday that talks should yield clear direction and pilot schemes to demonstrate that cooperation can work.

This push follows a directive from EU leaders in June to seek results from dialogue with Beijing. The EU's trade surplus with China reached €360.6 billion in 2025, a 15% increase from the previous year, and the surplus widened by a further 9% in the first half of 2026.

Sefcovic outlined three priorities for the discussions: addressing the surge in Chinese exports, removing barriers to EU goods in the Chinese market, and securing clarity on Beijing's export restrictions on critical supplies, particularly minerals. The EU has seen sharp increases in Chinese shipments of textiles, chemicals, machinery, batteries, and electric vehicles, which Brussels attributes largely to state-supported overcapacity.

Beijing has countered that highlighting economic imbalances and overcapacity constitutes protectionism aimed at restricting China's growth. China has also leveraged its dominance in processing critical minerals, having placed export restrictions on rare earths in April 2025.

Speaking at a panel debate in Berlin, Sefcovic acknowledged that a single trip to Beijing would not resolve the massive deficit. However, he stressed that the process must begin and require engagement from both sides. He warned that without demonstrable progress, there would be significant political pressure to explore alternative solutions, which he said would be detrimental to the European economy's future.