China, EU to hold regular trade talks as deficit pressure mounts

Hongkong,UPDATED: Jul 2, 2026 16:52 IST

China and the European Union will hold ministerial-level trade talks once or twice a year as both sides work to increase and rebalance trade, China’s Commerce Ministry said on Thursday. Under a newly agreed China-EU trade and investment consultation mechanism, Beijing has also invited EU Trade Commissioner Maro efcovic to visit China this autumn.

The move comes as the EU faces growing pressure to reduce its trade deficit with China, which widened to about 360 billion euros (USD 410 billion) last year, or nearly 1 billion euros a day. Chinese cars and batteries are among the products being exported to Europe in increasing volumes.

Ministry spokesperson He Yadong told reporters that China and the EU also plan to step up collaboration in areas such as artificial intelligence and the shift to renewable energy. Beijing’s remarks came after a meeting in Brussels on Monday between efcovic and China’s Commerce Minister Wang Wentao. After that meeting, efcovic said he would travel to Beijing in the autumn.

As the trade gap between China and the EU widens, Europe needs to “defend our industrial base and keep pushing for a level playing field globally,” efcovic said. He has set an October deadline for meaningful results on trade rebalancing.

On Wednesday, new EU measures aimed at protecting the European steel industry and limiting small e-commerce parcels came into effect, effectively targeting Chinese firms and imports. Last week, Yuyuantantian, a social media account linked to Chinese state media, said China was willing to increase imports from the EU, but added that the bloc “needs to relax its export controls on high-tech products” from China and not weaponise trade and economic issues.

In June, leaders of the G7 nations issued a joint declaration to strengthen their supply chains for critical minerals, which are important for many high-tech and defence sectors, as they sought to reduce reliance on China. The latest China-EU trade arrangement comes amid these broader efforts by both sides to address market access, trade imbalances and strategic economic concerns.

With PTI Inputs

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