EU seeks China trade gap action by early October

The European Commission is pushing China to take concrete steps to address the significant and growing trade imbalance between the EU and China, with a deadline of early October for initial actions. European Trade Commissioner Maros Sefcovic stated that the EU requires clear indicators and pilot schemes to demonstrate the effectiveness of ongoing cooperation and consultations.

This push comes after the EU's trade surplus with China reached $412 billion in 2025, marking a 15% increase from the previous year, and a further 9% widening in the first half of 2026. Sefcovic highlighted concerns over massive Chinese exports, particularly in textiles, chemicals, plastics, machinery, batteries, and electric vehicles, which the EU attributes to Chinese overcapacity. He also wants to address restrictions that EU exports face in China and China's export controls on critical materials like rare earths and legacy chips.

Beijing has previously criticized the focus on economic imbalances and overcapacities as protectionist. Sefcovic acknowledged that a single trip to Beijing would not resolve the deficit but stressed the necessity of initiating the process with mutual involvement. He warned that failure to demonstrate progress through this cooperative approach would lead to significant political pressure to explore alternative solutions, given the potential detriment to the European economy.