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EU-China trade talks opened in Beijing on 7 October 2026, with European Trade Commissioner Maros Sefcovic seeking concessions on a trade deficit that Al Jazeera reports exceeds €1 billion a day. Sefcovic is due to meet China’s Commerce Minister Wang Wentao on Thursday and Friday.
In this report
- The deficit and the sticking points
- Pressure from Paris and Berlin
- Beijing’s response
- What happens next
- EU-China talks: key questions
The deficit and the sticking points
According to Al Jazeera, the EU’s concerns centre on the size of its trade deficit with China, Chinese export restrictions on rare earths and other critical minerals, and surplus capacity in Chinese industry. China rejected an EU request for voluntary curbs on hybrid car exports, the Financial Times reported, and the Commission now hopes Beijing will accept a unilateral EU cap on hybrid imports instead.
Pressure from Paris and Berlin
On Tuesday, French President Emmanuel Macron and German Chancellor Friedrich Merz jointly urged the EU to prepare a “credible instrument” that could be activated quickly against countries that harm the bloc economically. Per the report, it would not name a specific country but would let the Commission respond within days, and Berlin wants it to be as strong as US Section 301 tariffs or China’s mineral export curbs. A majority of MEPs also backed a non-binding resolution calling for a firmer approach to Beijing.
Beijing’s response
China’s commerce ministry urged France and Germany to avoid protectionist measures and warned of a “resolute response” if the EU restricts Chinese firms or products. Beijing describes concerns about overcapacity as protectionism aimed at holding China back. G20 finance leaders, excluding China, agreed in September to act against “non-market” distortions.
What happens next
Sefcovic wants tangible results by October, with a commitment he can present to EU leaders at their Brussels summit next week, where trade with China tops the agenda. For background on the Commission’s trade tools, see the European Commission trade policy site.
EU-China talks: key questions
Who is negotiating in Beijing?
EU Trade Commissioner Maros Sefcovic is meeting China’s Commerce Minister Wang Wentao on Thursday and Friday, according to Al Jazeera.
How big is the EU’s trade deficit with China?
Al Jazeera reports it exceeds €1 billion, about $1.12 billion, per day.
What is the Franco-German proposal?
Macron and Merz want a rapid-response trade instrument that is not aimed at any one country but can be activated within days against economic harm.
When will EU leaders discuss it?
At a Brussels summit next week, where trade with China is the top agenda item.
Related reading: US-Iran tensions and record South Korea chip exports.
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