EU seeks broader China trade deal while preparing tougher measures
The European Commission wants to widen an agreement on Chinese hybrid cars as the EU’s trade deficit with China reaches €1 billion a day.
EU Trade Commissioner Maroš Šefčovič said on 23 October that negotiations with China required a political approach alongside conventional trade measures. Speaking after talks among the 27 trade ministers in Ireland, he warned that entire sectors and jobs were at risk.
The European Commission wants to bring more sectors into an agreement reached with Beijing on 9 October to restrict Chinese hybrid car imports. That arrangement provides country-specific quotas for 350,000 vehicles a year over four years, with an annual adjustment of 6 per cent.
Technical discussions with Beijing are continuing until the end of the year. Political negotiations are scheduled for January and March 2027. EU officials said progress on expanding the agreement would also depend on China's response to stronger EU trade defences.
EU leaders have authorised the Commission to develop a tool that could block China's access to the EU market in response to economic distortions. France and Germany have pushed for the measure, which the Commission hopes to propose before the leaders’ December summit.
A separate EU measure covering Chinese chemicals and industrial machinery could follow in December. Chinese customs figures show that exports from China to the EU rose by 25 per cent over the past year.
