EU and China hold high‑stakes trade talks in Brussels

EU trade commissioner Maroš Šefčovič met Chinese trade minister Wang Wentao in Brussels to discuss measures addressing the Union’s growing trade deficit with China, projected at €360 billion in 2025. The talks focused on concerns over what the EU describes as unfair Chinese subsidies that give Chinese firms a competitive advantage, especially in sectors such as steel, electric vehicles, semiconductors and rare earths.

The European Commission is preparing a range of defensive tools, including higher anti‑dumping duties, import quotas and a possible EU‑wide mechanism similar to the U.S. Section 301 that could force Chinese firms to diversify supply chains. France’s president has advocated for a European version of this tool. While the EU aims to avoid a full‑blown trade conflict, it has already doubled tariffs on imported steel and imposed extra charges on small parcels and Chinese‑made EVs. China has warned it will retaliate against any measures it deems unjust, having already levied duties on European cognac and launched anti‑dumping investigations into pork and dairy products. Divergent views among EU members, such as Germany’s cautious approach and Spain’s interest in Chinese investment, add complexity to the negotiations.