The Aporia
Trade Commissioner Maroš Šefčovič led an EU delegation to Beijing on October 24 for two days of critical talks with Chinese officials aimed at addressing the EU's significant trade deficit with China. The EU is particularly concerned about Chinese exports, especially hybrid electric cars, which have surged despite previous tariffs imposed by the bloc in October 2024. The current daily trade surplus stands at over €1 billion ($1.12 billion), and the overall annual deficit reached €360.6 billion ($580 billion) last year.
The talks focus on a "proof-of-concept" agreement that would allow the EU to implement unilateral measures if necessary, such as capping imports of hybrid cars. This approach seeks to balance trade without escalating into a full-scale trade war. However, optimism is low given past difficulties in negotiating with China and concerns about job losses across various industries in Europe due to Chinese competition.
The discussions come amid growing unity among EU nations like Germany and France, who traditionally had differing stances on trade policies but now agree on the need for stronger action against unfair trading practices by China.