EU-China trade talks begin in Beijing amid escalating pressure

By AFP and Reuters. Published On 7 Oct 20267 Oct 2026.

Key points

• European Trade Commissioner Maros Sefcovic has arrived in Beijing for discussions on the European Union's (EU) growing trade deficit with China.
• G20 finance leaders, except China's, agreed in September to act against "non-market" distortions that exacerbate imbalances.
• China responded to the letter by urging Paris and Berlin to steer clear of "protectionist" measures.
• "We hope that France and Germany, as major economies in the world, will uphold openness, cooperation and free trade, " the commerce ministry remarked in an official note.
• Chinese firms are increasingly challenging Europe's top car brands.

As well as Chinese curbs on exports of rare earths and other critical minerals, sefcovic will meet Chinese Commerce Minister Wang Wentao on Thursday and Friday after months of discussions over the EU's trade deficit of more than €1bn ($1.12bn) daily.

Meanwhile, Chinese firms are increasingly challenging Europe's top car brands. China rejected the EU request for voluntary curbs on Chinese hybrid car exports as the two sides enter negotiations, the Financial Times documented on Wednesday. The European Commission now hopes to obtain Beijing to accept a unilateral EU measure to cap hybrid imports instead, the outlet stated, citing two diplomats briefed on the plan.

Meanwhile, the two days of discussions come just as a majority of EU lawmakers pressed a more assertive trade policy towards Beijing in a non-binding resolution on Wednesday. China vowed a "resolute response" to safeguard its industries if the European Union goes ahead with restrictions against Chinese firms or products, according to its commerce ministry. Germany and France propose rapid EU measure.

French President Emmanuel Macron and German Chancellor Friedrich Merz, leaders of the bloc's two biggest powers, on Tuesday pressed the EU to prepare a "credible instrument" that could be swiftly activated to strike back against countries that harm the bloc economically.

For context, the new measure would not target any specific country. German authorities stated the EU needed a tool as powerful as the Section 301 tariffs imposed by the United States or China's restrictions on critical-mineral exports.

For context, the proposed weapon – to be discussed at an EU leaders' summit next week – would offer the European Commission the power to respond to a trade aggression within days.

"They should avoid going down the wrong path in the wrong way, only to ultimately suffer the consequences themselves."

G20 finance leaders, except China's, agreed in September to act against "non-market" distortions that exacerbate imbalances. Beijing notes that hyping up matters such as economic imbalances and overcapacity is a form of protectionism designed to exert pressure on and restrict China.

EU and Chinese authorities have been discussing trade imbalances since June. Sefcovic remarked he wanted "tangible results by October" as well as some form of commitment that can be put to EU leaders gathering in Brussels.

As ballooning debt has prompted auditors to warn regarding the next seven-year EU budget and has spurred protests in France, trade relations with China top the summit's agenda next week.

European Commission President Ursula von der Leyen informed the European Parliament last month that the trade imbalance had reached a tipping point and that Europe would apply every tool at its disposal to rebalance the relationship.

In short, eU-China trade talks begin in Beijing amid escalating pressure is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.