European Union trade commissioner Maros Sefcovic met Chinese Commerce Minister Wang Wentao in Brussels Monday amid rising concerns over growing trade imbalance between two economies. Sefcovic warned of unsustainable trends as EU's market share in China shrinks.
“China’s exports to the EU keep rising,while our market share in China keeps shrinking,” Sefcovic said, stressing urgency . EU's trade deficit with China hit €360.6 billion ($411 billion) in 2025, or €1 billion daily. A 15 percent increase from last year. Chinese firms dominate solar panels,rare earths,industrial robotics.
Chinese companies are making inroads in European markets, challenging local industries, especially automotive. Despite EU tariffs up to 35.3 percent on Chinese electric vehicles,brands like BYD,Geely gain ground. Chinese models topped 10 percent of total auto sales in bloc first time in May. Big changes — Volkswagen,BMW announced job cuts, Volkswagen may shed 100,000 jobs,or 15 percent .
Deindustrialization fears shift sentiment among EU states . Growing consensus: need unified response to Chinese goods . Philippe Le Corre from ESSEC Business School: “The EU needs its own policies including vis-a-vis China,” he said . Europe can't stay passive while U.S., China negotiate.
EU considers measures to protect industries. Revising Cyber Security Act to limit Chinese firms in critical infrastructure,drafting Industrial Accelerator Act to prioritize EU-made goods in procurement. From July 1,new steps: reduced duty-free steel quota, customs charge on small parcels.
EU leaders cautious about full-scale trade war with China. After meeting, Sefcovic called talks “constructive” and hoped for better mutual understanding. Both sides to set up joint trade monitoring mechanism to manage frictions.
“That is why today’s talks – and the ones to follow – matter. They help us avoid unnecessary tension,” Sefcovic said.
EU looking for real concessions from China to keep market access,avoid trade conflict. Stakes high, EU leaders won't settle for superficial deals. Alicia Garcia-Herrero from Natixis warned of potential job losses if EU doesn't act decisively…
