EU and China negotiate trade quotas to address massive deficit

The European Union and China are engaged in intense negotiations to address significant trade imbalances, with the EU pushing for import quotas on specific products to protect its domestic industries. The European Commission has set an October deadline to achieve “tangible” results, warning that failure to reach an agreement could lead to harder defensive measures.

EU leadership has highlighted the severity of the situation, with President Ursula von der Leyen describing the EU's trade deficit with China—estimated at approximately €1 billion per day—as “unsustainable.” Key sectors under pressure from Chinese competition include the automotive, green technology, and chemical industries. To facilitate negotiations, the Commission has temporarily delayed certain trade defense mechanisms intended to protect the chemical sector.

China has responded by warning it will “react strongly” to any new restrictions imposed by Brussels, stating that unilateral measures would undermine mutual trust and disrupt ongoing talks. High-level political discussions are scheduled to take place in Beijing on October 8 and 9, involving EU Trade Commissioner Maroš Šefčovič, as both parties attempt to navigate the EU-China Trade and Investment Consultations Mechanism.