BEIJING (AP) — Top trade officials from China and the European Union concluded two days of discussions on Friday, focusing on addressing rising trade imbalances between the two economies. EU trade chief Maros Sefcovic visited Beijing, emphasizing the importance of achieving "tangible outcomes" to rebalance trade with the EU's 27 member states.
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The outcome of the negotiations remains uncertain, particularly regarding the factors contributing to China's expanding trade surplus, which reached 360 billion euros ($410 billion) last year. China has called on the EU to lift its restrictions on imports of advanced computer chipmaking machinery, limitations that have been implemented for national security reasons at the request of the United States.
Sefcovic described the current talks as the result of three months of intensive negotiation, with an October deadline set for achieving concrete results in trade rebalancing. Earlier in the week, China's Commerce Ministry urged the EU to refrain from protectionist practices, warning that such steps could have negative repercussions.
Tensions in trade have escalated recently, with both parties imposing or considering restrictions on imports from each other. The EU has taken steps to limit French imports of Chinese-made electric vehicles and EV batteries, as well as measures aimed at protecting its steel industry. Additionally, the EU is regulating duty-free imports of small e-commerce parcels, primarily impacting Chinese fast fashion companies.
In response, China initiated an anti-dumping investigation last week concerning imports of p-nitrotoluene from the EU, a key chemical compound for dyes and pharmaceuticals. Concerns have emerged among Chinese officials and businesses over discussions among some EU member states about introducing further protectionist measures.
The increase in Chinese exports to Europe and beyond has sparked what some analysts are labeling "China shock 2.0," particularly as the U.S. has heightened tariffs under President Donald Trump to mitigate its significant trade deficit with China. China's overall trade surplus reached $1.2 trillion in 2025 and is projected to exceed $1 trillion this year.
The EU's trade deficit with China expanded to 103.34 billion euros (approximately $116 billion) during the April-July quarter, with imports rising to 153.63 billion euros ($172.3 billion) while European exports to China totaled 50.3 billion euros ($56.4 billion), according to EU data.