EU trade chief sets October deadline to resolve China trade deficit row

The EU's trade chief has set an October deadline to resolve a series of trade disputes between Brussels and Beijing, following talks with China's commerce minister Wang Wentao on Monday (29 June).

The meeting was billed as the first of a planned series of trade and investment consultations between the EU and China. In a joint statement, Maroš Šefčovič and Wang Wentao said the talks would seek to "stabilise and make our bilateral relationship more balanced."

The two sides also agreed to establish four "workstreams" covering:

• Trade and investment balancing
• Export controls
• Intellectual property rights
• WTO reform

Ahead of the talks, China had warned that it was prepared to suspend economic and trade relations with the EU if negotiations continue without tangible results, according to China's state broadcaster.

The need for "tangible results" was echoed by Šefčovič, who said the meeting was necessary to "avoid unnecessary tensions." He described the talks, which continued into the evening, as "positive" and "very constructive."

"The EU remains open for business. But we need to defend our industrial base and keep pushing for a level playing field globally, so our industries get a fair shot at competing," he added.

"We cannot afford to simply accept the unsustainable growth of the trade deficit with China," said Šefčovič, who noted that he would visit Beijing in the autumn to "assess progress."

The European Commission has drawn up plans to curb oversupply of Chinese industrial goods, as well as a proposed Industrial Accelerator Act that would bar some Chinese products from public procurement contracts and limit takeovers of European companies.

The commission has also set out plans to update its Cybersecurity Act, which would exclude Chinese companies—including Huawei—from obtaining contracts related to European telecommunications networks and systems.