EU-China Trade Talks Reach Final Round, Risking New Restrictions

European Trade Commissioner Maroš Šefčovič opened the last two days of talks in Beijing, launched in June, to address the EU’s €1 billion‑a‑day goods trade deficit with China. The discussions focus on Chinese plug‑in hybrid exports that have eroded European automakers’ market share, with the EU threatening safeguard measures that mix import quotas and tariffs if China fails to commit to export restraints. Chemicals are next on the agenda, and the Commission plans targeted safeguards on plastics and composites. EU leaders will review the outcome at a Brussels summit next week, weighing unilateral restrictions and the use of the Anti‑Coercion Instrument. While Franco‑German support bolsters Brussels’ stance, Chinese officials remain reluctant to make substantial concessions amid weak domestic demand and a property slump. The talks’ result will determine whether the EU can curb the surge of subsidised Chinese goods and protect its industrial base.