EU sets October deadline for 'tangible' trade results with China

EU Trade Commissioner Maroš Šefčovič met with China's Commerce Minister Wang Wentao in Brussels, setting an October deadline to achieve 'tangible' results in their dialogue aimed at rebalancing trade relations and addressing China's industrial overcapacity. Tensions have escalated recently due to concerns that China's excess production could flood European markets, impacting local industries. Šefčovič stated that discussions were intensive and constructive, with the objective of balancing the trade relationship, which currently sees the EU facing a record €1 billion daily trade deficit with China. Both sides agreed to intensify dialogue and establish a joint monitoring mechanism for trade flows. Šefčovič is scheduled to travel to Beijing in the autumn to assess progress. Germany's trade minister also met with Wang Wentao, emphasizing the need for a level playing field and reliable supply chains. The EU is also considering new trade defense tools, including diversification and solidarity mechanisms, to protect its market from cheap Chinese imports and potential unfair trade practices, while also fearing Chinese retaliation, particularly concerning rare earth exports.