EU-China trade talks begin in Beijing amid escalating pressure

European Trade Commissioner Maros Sefcovic is in Beijing for two days of talks with Chinese Commerce Minister Wang Wentao. The discussions will address the EU's significant daily trade deficit with China, reportedly over €1 billion, and China's restrictions on rare earth and critical mineral exports. These negotiations occur as a majority of EU lawmakers advocate for a more assertive trade policy towards Beijing. China has warned of a "resolute response" to any EU restrictions. Meanwhile, China rejected the EU's request for voluntary curbs on its hybrid car exports, leading the European Commission to consider a unilateral measure to cap imports. Germany and France have also called for a swift EU instrument to counter economic harm.

EU trade negotiators are traveling to China for critical talks aimed at addressing Beijing's significant trade surplus with Europe, specifically by curbing cheap hybrid electric car imports. The negotiations, led by Trade Commissioner Maroš Šefčovič, are scheduled to take place over two days and aim for tangible results before an upcoming EU leaders' meeting. The focus is on a potential pilot agreement in the automotive sector, which could be expanded to other industries. This initiative follows previous EU actions, including tariffs on Chinese electric vehicles, which led to a surge in hybrid car exports. EU member states have reportedly hardened their stance, demanding protection for their industries, with Germany and France advocating for new EU instruments to defend against unfair trade practices.