European Union seeks to rebalance trade relationship with China

The European Union is moving to rebalance its trade relationship with China, which officials describe as “unsustainable.” Stéphane Séjourné, Executive Vice President of the Commission for Prosperity and Industrial Strategy, warned that the trade imbalance is causing significant job losses, noting that the EU lost 250,000 industrial jobs last year, particularly in energy-intensive sectors and automotive supply chains.

Customs data from July showed the trade deficit between the bloc and China exceeded 1 billion euros per day. In response, the EU is implementing stricter measures to combat unfair competition. This includes a refusal to grant extensions for the phase-out of Chinese-made inverters in EU-funded solar energy projects, a deadline set for November 1.

EU Trade Commissioner Maroš Šefčovič is scheduled to visit Beijing on October 8 and 9. The mission aims to secure concrete commitments from China to limit certain exports and address sector-by-sector imbalances. While Beijing has previously resisted demands for voluntary export limits, the Commission continues to pursue dialogue and negotiation to stabilize the market.