China and EU reach 'stable and balanced' trade consensus

China’s Ministry of Commerce announced that a consensus was reached with the European Union to maintain a "stable and balanced" economic relationship. Spokesperson He Yadong said the agreement was achieved during the first meeting of the China‑EU trade and investment consultation mechanism and that both sides will hold a second meeting to continue dialogue.

The statement comes amid a reported €360 billion annual trade deficit for the EU and concerns from the European Commission about Chinese overcapacity in electric vehicles, batteries, solar panels and chemicals. While the EU calls the relationship "unsustainable," Beijing rejects accusations of protectionism and pledged frequent communication based on mutual respect.

The two parties have already conducted more than 20 rounds of consultations and organized specialised technical groups to address commercial grievances. Recent tensions include EU‑initiated counter‑measures against 14 European entities and the UK’s nationalisation of British Steel, a former Chinese‑owned subsidiary.