EU and China agree to three months of trade talks to address €360bn deficit

Key facts

• The EU and China have agreed to a formal trade consultation mechanism.
• The talks are scheduled to last for three months.
• The negotiations aim to address the EU's trade deficit with China.
• The EU's annual trade deficit with China is €360 billion.
• The EU expects tangible results by October.

The European Union and China have formally launched a trade consultation mechanism, signaling a commitment to address the significant trade imbalance between them. The agreement centers on a three-month period of intensive talks, with the primary objective of reducing the EU's substantial annual trade deficit with China. This deficit currently stands at €360 billion. The European Union has expressed expectations for tangible results to emerge from these negotiations by October. The initiation of this formal process marks a critical step in managing the economic relationship and seeks to foster a more balanced trade environment.