Full Breakdown
EU-China Trade Talks: Wang Wentao Meets Trade Commissioner Šefcovic Amid Overcapacity Concerns
6/29/2026, 5:03:58 AM
Core Event
On 29 June 2024, Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Maroš Šefcovic met in Brussels. The EU frames the talks as decisive for tackling China’s industrial overcapacity, low domestic demand, and the widening EU-China trade deficit. The EU prepared draft “overcapacity” and “diversification” tools, while Beijing introduced new regulations to counter perceived discriminatory measures.
Data & Statistics
- China produces about 30 % of global manufacturing output but consumes only 13 %.
- The EU-China trade deficit was €360 bn in 2025 and is projected at €400 bn in 2026.
- 55 % of European manufacturing faces rising Chinese market-share gains, with the renminbi estimated undervalued by 30 %.
- Germany’s bilateral deficit with China exceeds €90 bn.
- EU steel-import cuts target 47 % of Chinese shipments.
Official Statements & Responses
The European Commission said the draft “overcapacity” tool would allow targeted tariffs on Chinese industrial goods, while the “diversification” instrument would require European firms to source critical inputs from multiple suppliers. Commission President Ursula von der Leyen pledged to develop these trade-defence measures in the coming months, stressing a proactive use of the EU’s toolbox. Beijing’s Ministry of Commerce unveiled regulations authorising retaliatory tariffs, trade restrictions or sanctions against entities deemed to threaten Chinese supply chains. Both sides stressed the need for balanced dialogue.
Criticism & Opposition
France has called for stronger EU safeguards against Chinese overcapacity and market-distorting subsidies. German Chancellor Friedrich Merz warned that “naked flooding of markets” and systematic subsidisation are competitive distortions the EU cannot accept. The European Union Chamber of Commerce in China, led by Jens Eskelund, says European firms feel “cheated” and urges a revised framework. Academic Ding Chun describes Europe’s reliance on traditional sectors as a “difficult” period, urging a shift toward high-tech resilience.
Conflicting Reports & Gaps
While EU officials cite an autumn timeline for finalising the new instruments, no concrete adoption date has been announced, leaving the implementation schedule uncertain.
Verbatim Quotes
- “an imbalance that the world just cannot digest,” — Sabine Weyand, outgoing EU trade negotiator.
- “We want to remain in dialogue with China,” — Christian Stocker, Austrian Chancellor.
- “fully accept if productivity ... is higher [in China] than in Europe” — Friedrich Merz, German Chancellor.
- “Europe has already built an extensive toolbox in recent years. Now we must use it more proactively and more strategically to defend our European interests,” — Ursula von der Leyen, President, European Commission.
What’s Next
After the Brussels meeting, Wang Wentao will travel to the United Kingdom for a three-day visit, meeting British Trade Secretary Peter Kyle on steel-tariff policy. The EU is expected to develop the overcapacity and diversification tools in the coming months, while China could activate its newly announced counter-measure regulations in response.
