EU seeks to cut trade deficit with China in talks with Beijing

Live updates

1. 1h ago

   EU and China reach interim trade deal

   The European Union and China have agreed on a broad initial deal to curb China's exports of hybrid and plug-in hybrid cars to the EU. The deal, reached after two days of talks in Beijing, could cut Chinese hybrid exports by more than 50%. EU Trade Commissioner Maros Sefcovic and Chinese Commerce Minister Wang Wentao met to discuss the trade imbalance between the two sides.

   Why it matters

   Trade tensions have grown between the EU and China, with both sides imposing or considering curbs on each other's imports. The EU has been seeking to cut its trade deficit with China, which has been fueled by a surge in Chinese goods. The talks aimed to calm escalating tensions over trade imbalances.

   What is confirmed

   • The EU and China have agreed on a four-year understanding to curb hybrid and plug-in hybrid car exports to the EU.
   • The deal could cut Chinese hybrid exports by more than 50%.
   • EU Trade Commissioner Maros Sefcovic and Chinese Commerce Minister Wang Wentao met in Beijing to discuss the trade imbalance.

   What to watch next

   • Details of the trade deal implementation
   • Impact on EU-China trade relations
   • China's response to EU's trade policies
   Sources used for this update (25)

   1. WSJ — Germany and France Are Proposing a New Weapon to Counter Flood of Chinese Goods
   2. The Economist — Germany and France want EU storm gates for China’s trade surge
   3. The Economist — How Europe should handle its trade problem with China
   4. The New York Times — Europe’s Trade Tensions With China Are Coming to a Head
   5. Reuters — EU seeks to cut trade deficit with China in talks with Beijing
   6. South China Morning Post — ‘No more dumping, no more spying’: European Parliament hardens line on China
   7. Bloomberg.com — EU Is Taking Harder Line on China’s Trade Gap as Talks Kick Off
   8. Al Jazeera — EU-China trade talks begin in Beijing amid escalating pressure
   9. Financial Times — EU’s top trade envoy in China for tense talks over cars
   10. CNBC — CNBC Daily Open: The blame game — Brussels vs Beijing
   11. Bloomberg.com — Backlash on China Shock 2.0 Grows From Brazil to Europe
   12. The Economist — How Europe should deal with the new China shock
   confidence 85%