The European Union sees it as crucial to achieve "tangible results" with China to avoid a trade war

European Trade Commissioner Maros Sefcovic attends a press conference in Brussels, Belgium (REUTERS/Yves Herman)European Trade Commissioner Maros Sefcovic called for concrete results in the negotiations that the European Union (EU) and China are holding in Beijing, given the risk that trade tensions between the two parties could escalate into a tariff war. “After three intense months of contacts, we are working to rebalance trade between the European Union and China. It is crucial that the first phase of our conversations under the Trade and Investment Consultations deliver tangible results,” Sefcovic said after meeting with Chinese Commerce Minister Wang Wentao. The talks conclude this Friday, after months of friction between the bloc of 27 countries and the Asian power. Before his meeting with Wang, the European official warned that the European Union’s trade deficit with China, of around 1 billion euros per day, some USD 1.12 billion, is “unsustainable.” Brussels maintains that the entry of Chinese products at lower prices has affected European industrial sectors and caused tens of thousands of job losses. Several European leaders accuse Beijing of unfair trade practices, including state subsidies to companies, price dumping, and currency manipulation. The European Union seeks to avoid an escalation that could compromise China’s supply of strategic raw materials, such as rare earths, or create new barriers for European exports to the Chinese market. For the Chinese leader, Xi Jinping, the talks are also important: the Asian giant depends on exports to offset the weakness of its domestic economy. The President of the European Commission, Ursula von der Leyen (left), during a meeting with the Chinese leader, Xi Jinping (right), in Beijing (EFE/Archive) The chairman of the European Parliament’s Trade Committee, Bernd Lange, said before Sefcovic’s trip that China’s economic crisis gives the European Union “negotiating leverage” in the bilateral dialogue. “The EU has a wide range of tools to combat unfair subsidies, dumping, discriminatory procurement practices, and economic coercion. These instruments must be applied coherently and, when necessary, reinforced,” Lange said in a statement. The automotive sector is among the points of greatest tension in the talks between the EU and China. The Financial Times reported that Beijing rejected, before the visit, a Brussels proposal to voluntarily limit its exports of hybrid vehicles to the bloc. The European initiative sought for Chinese cars to represent about 15% of the community market, compared to a share that currently exceeds one third. The European Commission is analyzing the application of a temporary trade safeguard to limit the entry of vehicles imported from China without the need to prove abusive market practices. The measure would allow China to export a defined quantity of cars to the community bloc. Shipments exceeding that quota would be subject to “very high” additional tariffs. Brussels seeks to agree on a quota that Beijing can accept without triggering retaliation. The mechanism would, however, have a general scope and would also affect other trading partners, including the United Kingdom, South Korea, and Japan. German Chancellor Friedrich Merz and French President Emmanuel Macron hold a press conference at Schloss Augustusburg in Bruehl, Germany, on July 17, 2026 (REUTERS/Thilo Schmuelgen) China rejects that there is a structural overcapacity caused by state subsidies or by weak domestic demand. Beijing accuses the EU of politicizing trade disputes and moving toward protectionist measures. The meeting between the parties takes place just days after France and Germany called for new European trade defense mechanisms. The European Parliament has also defined the relationship with China as a “critical point.” (With information from AFP and EFE)