China and the EU Continue Talks to Address Trade Imbalance

China and the European Union (EU) have concluded two days of talks aimed at easing tensions caused by the growing trade imbalance between the two sides.

According to the Associated Press (AP), Maroš Šefčovič, the EU Commissioner for Trade, stressed during his visit to Beijing the importance of rebalancing trade relations between China and the EU’s 27 member states.

However, it remains unclear whether the parties will reach an agreement on addressing the underlying causes of China’s trade surplus, which reached €360 billion ($410 billion) last year.

During the talks, China also objected to restrictions imposed on national security grounds at the request of the United States. Beijing called on the EU to remove barriers to exports to China of equipment used in the manufacture of advanced computer chips.

Šefčovič said the talks held this week marked the culmination of three months of intensive discussions. He had set October as the deadline for achieving tangible results in efforts to improve the trade balance.

Earlier this week, China’s Ministry of Commerce issued a statement urging the EU to refrain from protectionist measures, warning that such actions could prove counterproductive.

Trade tensions between the two sides have intensified in recent months. The EU has taken restrictive measures targeting Chinese-made electric vehicles and their batteries, as well as steel products. The bloc is also seeking to tighten rules on duty-free imports of small parcels, a move that would primarily affect Chinese companies.

Meanwhile, China launched an anti-dumping investigation into imports of p-nitrotoluene from the EU last week. The chemical compound is used in the production of dyes and pharmaceutical products.

The expansion of Chinese exports has also heightened concerns in Europe about the competitiveness of domestic manufacturers. The situation, described by some observers as “China Shock 2.0,” is associated with the growing volume of Chinese exports to Europe and other markets. The United States’ decision to increase tariffs on Chinese goods, particularly following President Donald Trump’s return to the White House, has also affected global trade relations.

According to reports, China’s global trade surplus reached a record $1.2 trillion in 2025. The figure is forecast to exceed $1 trillion again this year.

According to EU statistics, the bloc’s trade deficit with China rose to €103.34 billion (approximately $116 billion) between April and July of this year. During the same period, imports from China totalled €153.63 billion, while exports to China amounted to €50.3 billion.

The main objective of the talks is to reduce the trade imbalance and ease tensions in the two sides’ economic relations.