Full Breakdown
EU Seeks Urgent Rebalancing of Trade Deficit with China
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Trade Imbalance and Job Losses
Customs data released for July show the EU’s daily trade deficit with China exceeding €1 billion. Stéphane Séjourné, the Commission’s Executive Vice-President for Prosperity and Industrial Strategy, said the bloc lost 250,000 industrial jobs last year, especially in energy-intensive sectors and automotive supply chains.
Official Statements & Responses
Séjourné told Euronews that the European Commission has presented a sector-by-sector proposal to Beijing, seeking “credible” commitments to curb Chinese exports that flood the EU market. The EU Industry Commissioner added that any Chinese retaliation, such as restricting rare-earth exports, would be closely monitored.
Tools, Risks, and Broader Context
The Commission’s negotiating package focuses on anti-dumping measures and possible tariffs aimed at “unfair subsidies.” While these tools could protect EU manufacturers, officials acknowledge the risk of Chinese counter-measures that might affect critical inputs for defence and other sectors. The EU is also watching the three-day summit in Washington, where President Xi Jinping meets President Donald Trump.
What’s Next
- 8-9 October (scheduled): EU Trade Commissioner Maroš Šefcovic will travel to Beijing for high-stakes talks aimed at securing export curbs.
- 10 November (deadline): The existing US-China trade truce expires, a development Séjourné says could further influence Europe’s trade environment.