Business · Trade · 1 hr ago
EU-China trade talks leave the bloc’s widening deficit largely untouched
EU trade commissioner Maros Sefcovic held talks in Beijing on October 8 and 9, agreeing on several shared understandings with China.
The discussions included a possible reduction of more than half in Chinese hybrid and plug-in hybrid car exports to the EU over four years.
The EU’s goods trade deficit with China reached about €360 billion in 2025, up from €305 billion in 2024, as imports rose and exports fell.
For the first time, all 27 EU member states had a trade deficit with China.
The proposed car measures cover only one part of the trade imbalance: Chinese car exports to the EU were worth about €15 billion in 2025.
The EU also imports growing amounts of machinery, chemicals, metals, solar panels and batteries from China.
The talks have not yet resolved the wider trade imbalance, and Sefcovic said the discussions were still far from finished.
The European Union’s goods trade deficit with China reached about €360 billion in 2025, up from €305 billion in 2024.
For the first time, all 27 EU member states had a bilateral trade deficit with China.
European Commissioner for Trade Maros Sefcovic held talks in Beijing on 8 and 9 October, but economist Alicia Garcia Herrero said the agreed measures would do little to address the wider imbalance.
One shared understanding aims to moderate Chinese exports of hybrid and plug-in hybrid cars, potentially reducing them by more than half over four years.
The article attributes the deficit to China’s competitiveness and manufacturing overcapacity, and says the imbalance is widening by about €1 billion a day.
- Who
- The European Union and China. EU trade commissioner Maros Sefcovic led the talks; economist Alicia Garcia Herrero assessed their outcome.
- What
- EU-China trade talks produced three shared understandings, including a plan to moderate Chinese hybrid-car exports. The article says the measures leave the wider EU trade deficit largely untouched.
- When
- Sefcovic visited Beijing on 8 and 9 October 2026. The article was published on 13 October 2026.
- Where
- Beijing, China, and the European Union.
- Why
- The talks addressed trade concerns as the EU’s goods deficit with China widened. The article links the deficit to China’s competitiveness and manufacturing overcapacity.
European Commission
Alicia Garcia Herrero
Effect of the shared understandings
European Commission
The Commission says the discussions could keep several million vehicles out of the EU single market.
Alicia Garcia Herrero
The measures are only a temporary palliative because they address one product and leave the broader trade shock unresolved.
EU trade commissioner Maros Sefcovic held talks in Beijing.
Sefcovic returned from Beijing with three shared understandings.
Le Monde published Alicia Garcia Herrero’s assessment of the talks.
- EU goods deficit with China, 2025
- About €360 billion
- EU goods deficit with China, 2024
- €305 billion
- Daily pace of deficit increase
- About €1 billion
- EU member states in bilateral deficit
- 27
- Chinese car exports to the EU, 2025
- About €15 billion
What people are saying
We are still far from the end.
China has an interest in preventing the European Council from taking a firmer position.
Sources
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