Today, October 7, EU officials responsible for trade issues will travel to Beijing for two days of intensive negotiations with China. The EU delegation will be led by Maros Sefcovic, European Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency.
On October 8–9, within the framework of the so-called China-EU “Trade and Investment Consultations,” Sefcovic will meet his Chinese counterpart, Wang Wentao. The negotiations aim to address the existing imbalance in China-EU trade relations. In recent months, China’s trade surplus with EU member states has increased significantly.
China-EU relations are facing criticism from several member states. In particular, amid the growth of cheap imports from China, the competitiveness of manufacturing companies in Europe’s industrial centres, including Germany, is declining. As a result, European companies are unable to compete effectively with Chinese corporations, forcing them either to close or scale down their operations. Therefore, the growth of imports from China is potentially associated with the problem of unemployment.
Critics believe that China’s model of state capitalism and its practice of providing state subsidies are harming the EU’s manufacturing sector.
France and Germany are distinguished by their particularly hawkish stance on trade issues with China. On October 5, German Chancellor Friedrich Merz and French President Emmanuel Macron signed a paper providing for the introduction of a new mechanism for regulating foreign trade. The initiative envisages the use of an emergency instrument against countries or companies that engage in unfair trade practices in the European market. According to experts’ assessments, the instrument would enable the EU, if necessary, to exclude China from the European market.
On October 7, China’s Ministry of Commerce expressed hope that France and Germany would refrain from encouraging the EU to resort to protectionist instruments. The ministry called on the parties not to politicize economic and trade issues.
Next week, the leaders of EU member states will meet in Brussels. The results of the negotiations with Beijing will also be discussed at this meeting.
Source: South China Morning Post – ‘Last chance saloon: EU presses China for a sign to prove trade talks can work’
