Brussels and Beijing agree to address trade imbalances and market access issues by October amid rising EU imports of Chinese goods.
The European Union aims to narrow its €360 billion trade deficit with China by October, as officials push for tangible results in addressing imbalances and market access. A joint statement released Monday outlined plans to establish a bilateral working group to monitor trade flows and ensure supply chain stability, particularly for rare earths and permanent magnets.
EU trade chief Maros Sefcovic highlighted the unsustainable trend of rising Chinese exports to Europe while EU market share in China declines. The talks follow warnings from Beijing that it would retaliate against any new trade curbs targeting overcapacity. However, record heat waves across Europe are driving demand for Chinese-made air conditioners, complicating efforts to reduce reliance on imports.
Both sides acknowledged challenges but expressed commitment to delivering measurable progress by the October deadline. The agreement comes as Brussels seeks to rebalance trade without disrupting critical supply chains or provoking further retaliation.