EU and China set October deadline to reset trade relations

business international relations trade policy

EU Trade Commissioner Maroš Šefčovič and Chinese Commerce Minister Wang Wentao met in Brussels to open formal trade consultations. The two sides have agreed to three months of talks to attempt to make their bilateral relationship more balanced and avoid a trade war, marking their first joint statement in seven years.

The consultations follow weeks of threats and recriminations from China as the EU prepares countermeasures to battle a flood of cheap imports and components. Tensions have risen between the two economic powers over a €360bn annual import/export imbalance, and Commissioner Šefčovič stated that the status quo is not an option.

German Trade Minister Katherina Reiche also met with Wang Wentao, calling on Beijing to ensure a level playing field. An October deadline has been established to make progress on the trade disagreements, and Šefčovič announced plans to travel to China this autumn.

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