Trade tensions between the European Union and China are set to be the focus of talks in Brussels on Monday as EU Trade Commissioner Maros Sefcovic hosts his Chinese counterpart, Commerce Minister Wang Wentao, for a day of discussions. The EU is increasingly concerned about trade imbalances with China, fearing the loss of key industries due to an influx of cheap Chinese goods. Wang's visit follows EU leaders tasking the European Commission to address the issue through dialogue with Beijing while preparing defensive measures to protect critical sectors.
Growing Concerns Over Trade Imbalances
The EU's trade deficit with China reached approximately 360 billion euros ($410 billion) in 2025, reflecting a significant imbalance where the bloc imported far more from China than it exported. Sefcovic is expected to convey to Wang that these imbalances are unsustainable for the EU. The discussions will also include a special dinner hosted by Sefcovic on Monday evening.
EU's Defensive Measures and China's Retaliation
While the EU hopes to avoid a trade war with its second-largest trading partner, it has an arsenal of trade defense tools at its disposal. These include imposing higher tariffs on goods sold at unfairly low prices or with state support, and implementing safeguard measures such as quotas in response to sudden import surges. The European Commission is also developing an instrument to force businesses to diversify their suppliers in critical sectors like chips and rare earths.
China, in turn, has warned it will retaliate against any measures it deems unfair. Previous retaliatory actions have included duties on European cognac and anti-dumping probes into pork and dairy products. Despite the threats, Beijing's envoy to the EU, Cai Run, urged dialogue, emphasizing that the EU and China are "partners, not rivals, and certainly not enemies."
Background and Context
The EU's concerns are backed by data showing that Chinese firms receive significantly more government support than their OECD counterparts. Between 2005 and 2024, Chinese companies received around three to eight times more state subsidies, according to the OECD. The EU has already taken several measures to confront soaring imports from China, including doubling duties on foreign steel, imposing higher levies on small parcels, and applying hefty tariffs on Chinese-made electric vehicles.
