EU trade committee chief calls for wider China negotiations

The EU should move beyond sector-by-sector negotiations with China and seek a broader trade accord, Bernd Lange said on 21 October. The German Socialist, who chairs the European Parliament’s Trade Committee, argued that investment should be included.

Lange proposed taking another look at the investment elements of the Comprehensive Agreement on Investment. Ratification was frozen by the European Parliament in 2021, following Chinese retaliatory sanctions imposed in response to EU measures concerning human rights abuses.

A hybrid car accord concluded on 9 October does not go far enough to tackle the trade imbalance, in the EU’s view. The bloc’s deficit with China is around €1 billion a day.

China agreed under that accord to cut its hybrid car exports to the EU by half over four years. Country-specific quotas will permit 350,000 Chinese hybrid cars to enter the EU market each year, with a fixed yearly adjustment of 6 per cent. The European Commission considers this an opening stage, with technical negotiations continuing before political talks in March 2027.

French liberal MEP Pascal Canfin said the negotiations should address unfair practices affecting manufacturers across sectors, rather than focus only on separate industries. He nevertheless remained open to discussions on individual sectors.

Other issues Lange wants covered include Chinese export restrictions and strict licensing rules for EU businesses seeking to export rare earths. He also cited unfair subsidies in chemicals and machinery, alongside a surcharge of 20 per cent on EU bids for public procurement.

Lange and Canfin will be among 12 MEPs visiting China from 27 to 29 October. Their programme includes talks with Chinese commerce ministry representatives and National People’s Congress members. Meetings with high-tech businesses in Hangzhou are also expected.