EU Trade Commissioner Maroš Šefčovič is meeting Chinese Commerce Minister Wang Wentao in Beijing. The talks focus on the bloc’s trade deficit, which exceeds €1 billion a day, and China’s curbs on exports of rare earths and other critical minerals.
Šefčovič arrived in Beijing for discussions scheduled for Thursday and Friday. The two-day talks follow months of negotiations over the trade imbalance and Chinese restrictions on supplies of minerals considered critical to European industry.
Reuters and Euronews report that the EU’s daily trade deficit with China exceeds €1 billion. Brussels is also concerned about limits on exports of rare earth elements, which are used across the bloc’s industrial sector.
A separate dispute concerns Chinese hybrid cars. The Financial Times reported that Beijing rejected the EU’s request for voluntary limits on their exports. The European Commission is now considering a unilateral import cap, although discussions are continuing.
Trade tensions have grown after a majority of European Parliament members called for a tougher policy towards Beijing. China said it would respond to restrictions against Chinese companies or products. French President Emmanuel Macron and German Chancellor Friedrich Merz have urged the EU to prepare a mechanism for a rapid response to economic harm. EU leaders could discuss the proposal at a summit next week.
China’s commerce ministry urged Paris and Berlin to avoid protectionist measures. Beijing views claims of overcapacity and trade imbalances as efforts to constrain its development. Šefčovič has said he wants concrete results to present to EU leaders. European Commission President Ursula von der Leyen said the trade imbalance had reached a turning point.