European Union warns China of tougher trade measures if negotiations fail

European Union trade Commissioner Maros Sefcovic has warned that the EU will implement harsher measures if upcoming trade negotiations with China do not yield concrete results by October. The discussions aim to address a significant trade imbalance, as EU imports from China have grown by 45% over the last five years while European exports to China have declined.

Negotiations are currently focused on sensitive sectors including automobiles, medical devices, and agricultural products. Sefcovic is scheduled to hold talks with Chinese Commerce Minister Wang Wentao in September, followed by a visit to Beijing in October. EU officials emphasized that the current level of dependency on Chinese markets, particularly in strategic industries, constitutes a significant risk.

To mitigate these risks, the European Commission is drafting a ‘diversification tool’ to encourage companies to expand their supplier bases and reduce reliance on China. Additionally, the proposed ‘Industrial Acceleration Act’ could restrict certain Chinese products from participating in EU public procurement and limit Chinese acquisitions of European firms. EU leadership, including Commission President Ursula von der Leyen, has stressed that maintaining a partnership does not mean accepting permanent trade imbalances.