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

Key facts

• The European Union and China have launched a formal trade consultation mechanism.
• The talks are scheduled to last for three months.
• The primary goal is to address the EU's significant annual trade deficit with China.
• The EU expects tangible results by October.
• The EU aims to resolve ongoing trade disputes with China.
• The EU seeks to rebalance economic ties with Beijing.

The European Union and China have formally launched a trade consultation mechanism, marking the beginning of a three-month period dedicated to addressing the significant annual trade deficit the EU holds with China. This dialogue is a critical step for the EU in its efforts to rebalance economic ties and resolve ongoing trade disputes with Beijing. The European Commission anticipates that tangible results from these discussions will be achieved by October. The initiation of these talks signifies a commitment from both sides to engage constructively on complex trade issues, with the EU seeking to create a more level playing field for its businesses operating in the Chinese market. The focus will likely be on market access, fair competition, and other trade-related barriers that have contributed to the substantial deficit.