Šefčovič Heads to Beijing for Talks on Trade Imbalance; Germany and France Push EU Hard Line on China; Beijing Denies 'Unfair Trade' Allegations

EU Trade Commissioner Maroš Šefčovič arrived in Beijing on Thursday for two days of talks with Chinese counterparts on the EU's trade deficit with China. According to Deutsche Welle, Šefčovič met with Chinese Commerce Minister Wang Wentao and later posted on social media platform X, saying the EU is 'working to rebalance EU-China trade' and stressing that the talks must deliver 'tangible results.'

According to EU data, the EU's trade deficit with China is currently at its highest level since 2022, with China exporting roughly one billion euros more in goods and services to the EU each day than flows in the reverse direction. Šefčovič characterized the imbalance as 'unsustainable.'

On the causes of the imbalance, the EU and China remain at odds. German Chancellor Friedrich Merz and French President Emmanuel Macron earlier this week publicly called on the EU to adopt tougher measures, accusing alleged unfair trade practices of 'weakening European companies' and deepening economic dependence. European Commission President Ursula von der Leyen went further last month, warning that the current imbalance is 'driving Europe's industrial heartland toward deindustrialization'—a formulation that reflects European industrial capital's anxieties over the loss of key manufacturing sectors such as automobiles.

Beijing has denied the above allegations. According to Deutsche Welle, Chinese Foreign Ministry spokesperson Mao Ning said at a regular press briefing on Thursday that 'resolving economic and trade differences through equal dialogue and consultation serves the common interests of both China and the EU,' and expressed hope that the EU would 'work with China to advance the resolution of the issues.' She did not directly respond to specific allegations of 'state subsidies' or 'low-price dumping.'

One specific dispute centers on hybrid vehicles. According to Deutsche Welle, citing diplomats, China has rejected the EU's request for voluntary restrictions on hybrid vehicle exports to Europe. Brussels may move to activate trade defense instruments, imposing temporary restrictions such as quotas and tariffs on Chinese automobile imports—an option that Beijing has explicitly opposed.

These talks are part of three months of consultations between EU and Chinese officials on the trade imbalance. Šefčovič had previously stated that he hoped to see results before October. According to Deutsche Welle, EU leaders are expected to discuss relations with China at a summit in Brussels next week.