EU and China set October deadline to curb €360 bn trade deficit

EU trade commissioner Maros Šefčovič and Chinese commerce minister Wang Wentao met in Brussels at the end of June 2026 and agreed to intensify dialogue on trade and investment. Both sides pledged to deliver "tangible results" by October 2026, aiming to narrow the EU’s goods trade deficit with China, which reached about €360 billion in 2025 – roughly €1 billion a day.

The parties established four workstreams – trade‑and‑investment balance, export controls, intellectual‑property rights and WTO reform – and created a joint monitoring mechanism to exchange data on commercial flows. The EU warned it may employ its trade‑defence toolbox, including anti‑subsidy duties of up to 35.3 % on Chinese electric vehicles, while China signalled it could freeze economic ties if the talks do not yield progress.

Šefčovič announced a follow‑up visit to Beijing in the autumn to assess the outcome, and both sides indicated a willingness to explore market‑access concessions, especially in sectors such as rare‑earths and clean‑energy technologies.