EU trade deficit with China soars as MEPs demand ‘urgent’ rebalancing

EU trade deficit with China soars as MEPs demand ‘urgent’ rebalancing
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Members of the European Parliament’s International Trade Committee have called for more frequent EU–China dialogue and for “concrete outcomes” in trade talks after a three-day visit to China.

The delegation discussed trade imbalances, market access concerns and areas where the two sides could continue talks under the Trade and Investment Consultation (TIC) framework, the parliamentary press service announced on Thursday.

Bernd Lange, chair of the European Parliament’s International Trade Committee and head of the delegation, said the group discussed continuing the TIC framework and pointed to a recent TIC agreement on hybrid car imports as “a good starting point.”

Lange said MEPs told Chinese counterparts they expected more sectors to follow a similar approach and for existing commitments to be implemented, adding that the talks also covered “increasing transparency on subsidies and supply chains.”

Pascal Canfin, the committee’s standing rapporteur for trade relations with China, said the European Parliament wanted to convey “a sense of urgency” to “stabilise and rebalance” the trade relationship.

Canfin emphasised that the EU’s approach was based on dialogue but that “we also need to see results”, adding that the TIC talks had “created momentum and produced concrete outcomes.”

Meetings in Beijing, Hangzhou and Shanghai

The European Parliament said MEPs raised concerns about obstacles faced by EU companies in China, “unpredictable supply chains”, access to critical raw materials, excess production capacity, and Chinese decrees that they said negatively affect foreign companies.

The delegation also discussed strengthening the multilateral trade system within the World Trade Organization (WTO) — the global body that sets rules for international trade and resolves disputes between members.

During the trip, MEPs met China’s commerce minister Wang Wentao, as well as senior figures from the National People’s Congress, and held exchanges with the EU Chamber of Commerce on barriers faced by EU firms in China.

The visit took place in Beijing, Hangzhou and Shanghai from 27 to 29 October, and was the second time the committee has visited China after a previous trip in 2018.

China is the EU’s third-largest trading partner when goods and services are combined, while the EU is among China’s top trading partners.

The EU’s deficit with China has been growing and has recently reached €1 billion a day.


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