EU sets up three months of talks with China over €360bn trade deficit
Summary
The European Union and China have agreed to start three months of talks to address the EU’s large trade deficit with China, which is about €360 billion a year. They aim to find solutions to balance trade and avoid a trade war before their next meeting in Beijing in October.Key Facts
- The EU runs a €360 billion annual trade deficit with China, meaning it imports much more from China than it exports.
- The EU and China issued their first joint statement in seven years to begin formal trade consultations.
- Talks focus on rebalancing trade, export controls (including rare earth metals), intellectual property rights, and World Trade Organization reforms.
- Both sides will use a joint monitoring system to watch for sudden changes in trade that could trigger political discussions.
- The EU’s trade commissioner, Maroš Šefčovič, hopes these talks will produce real results before the October meeting in Beijing.
- The EU imposed tariffs on electric vehicles this year, but those tariffs have not stopped imports from rising.
- Industry groups warn that Chinese imports threaten European factories that depend on components from China.
- The EU is considering other measures like quotas on hybrids and chemicals to protect its industries.
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